SageForum for UK versions of Sage 50- Help and support.

Help!! I am new to VAT cash accounting. In the usual way of processing VAT you post it against the invoice as T1 and then post the payment when it goes out as T9.
Am I right in thinking that if you make a payment on account in VAT CA system (for example on a pro forma) you input the payment as T1 then when the invoice turns up you post that as T9, in other words the reverse of the usual way. I am worried I might double account and claim too much back!!

No, you need to have the same tax codes to be able to allocate payments & invoices.

So, if you post a payment on account (SA or PA) you post this with the correct tax code (T0, T1, T2 etc) then enter the invoice with the correct tax code (T0, T1, T2 etc) and then allocate the payment to the invoice.

Hope this helps.

What actually happens is that you allocate the payment against invoices and Sage automatically assigns the tax code to that part of the payment according to what you matched it against.

Only if you do an "on account" payment will you need to say what tax code it it, and you will only be able to match that "on account" payment against invoices with the same tax code.