Writing off an account/invoice/amount

[Dumbo]

Hi - Using Sage Line 50 (not sure of version as I am not at work at the moment).

I am having a bit of trouble writing off supplier and customer accounts. I have just started a new job where they use VAT Cash Accounting. I have tried using the help facility but keep getting an error. Here's an example:

A customer has unpaid invoices totalling £1000, from 2005. My boss has asked me to write it off. So, I created a dummy credit note for £1,000, with the reference "BADDBT" and nominal code 8100 - Bad Debt Write Offs. I used T9 for the VAT code as instructed on the "help" system. However, when I go to allocate the invoices, it says there is a mismatch with the VAT and won't let me do it. The invoices originally had a T1 vat code. (I assume that the only way to allocate it is to do a Bank - customer payment). What am I doing wrong? Is there something else I should be doing?

Thanks

[brucedenney]

The issue with Cash accounting on this invoice is that the VAT has been recorded in the control account, but never paid to the VAT man.

Doing a T9 Credit leaves the VAT in the control account so a mismatch would occur.

The solution is to reverse the invoice with a credit note with the same Tax Codes and same tax amounts. You will them be able to match them off.

(You will also need to raise a T9 invoice to reverse your T9 reversal)

[Dumbo]

I hadn't thought about the VAT not actually being paid yet as I am new to Cash Accounting!! Thanks very much for your help.