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

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

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)

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.