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

Hi
Is there as way of setting up a default bank payment tax code. At present when transactions are posted via the bank feed, when you click on bank payment to create a match the default code is T1 (20%) obviously this is incorrect, for example when i am trying to create a wage payment. also when you change the TC it doesn't automatically change the net figure back to the gross figure, you can not also scroll down through the unmatched transactions to see the imported gross figure. manually adding together the net and vat element is not really feasible. is there an easier way i'm missing. Im using Cash accounting by the way.

Typically all bank transactions against accounts are non VAT so the default is normally T9

With Cash accounting this changes things as the VAT needs to be accounted for on the Receipt/Payment not the matching Invoice.

Bank feeds are a fairly new feature and may improve over time. You might like to feed back to Sage on this.

I have a custom importer for my bank statement, it changes tax codes depending on the account the monies came from/goes to. But I am very lucky as my bank (co-op) gives me the bank account no and sort code to use as a key to find the account, taxcode etc.

It just seems a really backward way of doing things when you use cash accounting, how can the bank know how the vat will be distributed? I have fed back to sage, so hopefully this may be in one of their releases.

I have just discovered that if you use the f9, you can actually manually add the vat amount to the net so you can get the Gross figure that way, but just seems a lot of work. Although after migrating over from Tas bank feeds are a huge improvement!
You win some and loose some i suppose!

I Appreciate you your responce

The bank doesn't know, that is why human intervention is required.

If you had 2 transactions on a customer account one for £40+£10 Vat and one for £50 with no Vat, when you receive £50 the vat element of that receipts for your VAT return depends on which transaction it pays.

If you get money before you raise the invoice (receipt on account) you have to tell sage what the VAT code is...
Sage is organised well enough that you can not match a T0 receipts to a T1 Invoice.
People often get stuck on working out how to deal with this when a payment on account had the wrong VAT code on it when it was entered.