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VAT Invoice Problem

Posted: 25 Jul 2015, 08:47
by Fresh1961
Hi All,

I wonder if anyone could help me with a solution for the scenario below:

I have an Invoice for a piece of machinery that is VATable, I paid the deposit and entered this into Sage through my current account inc. VAT. The rest of the bill will be paid off monthly, similar to HPI. I have a VAT period coming up soon and would like to enter the entire VAT amount before the end of the period but am not sure how to do this without creating an incorrect current account balance.

Invoice Amount: £6,750.00 inc. VAT

Deposit Paid: £1687.50 inc. VAT

Remaining VAT to pay: £843.75

My first thought is to alter the tax position of the deposit I paid so that this takes into account the entire VAT portion. However I am not sure how to do this or if it is even possible?

Any help would be greatly appreciated, only my 2nd month using Sage with no book-keeping background so hitting a few stumbling blocks!

Re: VAT Invoice Problem

Posted: 25 Jul 2015, 15:31
by brucedenney
Are you on cash accounting for vat?