 NOTE: The example postings in this article assume you are correcting standard rate VAT invoices. If the original invoice was a different VAT rate, for example, reduced rate, you should use the relevant tax codes for that rate.
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Sage 50 Accounts v27.1 and above- Create a new supplier record to be used for VAT adjustment postings, for example, Postponed VAT adjustments. Read more >
- Click Suppliers then click the new supplier record.
- If the original estimated VAT amount was too low, click Batch invoice then enter a VAT only invoice as follows:
| Supplier | Date | N/C | Details | Net | T/C | Tax |
|---|
| New adjustment record | Current date | Original purchase nominal code | Postponed VAT adjustment | 0.00 | T18 | VAT adjustment amount |
NOTE: By default, T18 is the postponed VAT code, but may differ depending on the tax codes you already have.
A purchase credit also posts automatically which clears the balance from the creditors control account.
- If the original estimated VAT amount was too high, click Batch credit then enter a VAT only credit as follows:
| Supplier | Date | N/C | Details | Net | T/C | Tax |
|---|
| New adjustment record | Current date | Original purchase nominal code | Postponed VAT adjustment | 0.00 | T18 | VAT adjustment amount |
NOTE: By default, T18 is the postponed VAT code, but may differ depending on the tax codes you already have.
A purchase invoice also posts automatically which clears the balance from the creditors control account.
The VAT adjustment amount appears in boxes 1 and 4 on your next VAT Return.
Sage 50 Accounts v27.0 and belowTo deal with postponed VAT adjustments you can use contra entries.
Create new contra entry records > - Create a contra entry bank account. Read more >
- Create a new customer record to be used for VAT adjustment postings, for example, Postponed VAT adjustments. Read more >
- Create a new supplier record to be used for VAT adjustment postings, for example, Postponed VAT adjustments. Read more >
If the original estimated VAT amount was too low > - Click Suppliers then click the new VAT adjustment supplier record.
- Click Batch invoice then enter a VAT only invoice as follows:
| Supplier | Date | N/C | Details | Net | T/C | Tax |
|---|
| New adjustment record | Current date | Original purchase nominal code | Postponed VAT adjustment | 0.00 | T1 | VAT adjustment amount |
- Click Customers then click the new VAT adjustment customer record.
- Click Batch invoice then enter a VAT only invoice as follows:
| Customer | Date | N/C | Details | Net | T/C | Tax |
|---|
| New adjustment record | Current date | Original purchase nominal code | Postponed VAT adjustment | 0.00 | T1 | VAT adjustment amount |
- Click Bank accounts, select the contra entry bank account then click Supplier payment.
- Post a supplier payment to pay off the VAT adjustment invoice in full, using the same date as the invoice.
- Click Bank accounts, select the contra entry bank account then click Customer receipt.
- Post a customer receipt to pay off the VAT adjustment invoice in full, using the same date as the invoice.
The VAT adjustment amount appears in boxes 1 and 4 on your next VAT Return. If the original VAT amount was too high > - Click Suppliers then click the new VAT adjustment supplier record.
- Click Batch credit then enter a VAT only credit as follows:
| Supplier | Date | N/C | Details | Net | T/C | Tax |
|---|
| New adjustment record | Current date | Original purchase nominal code | Postponed VAT adjustment | 0.00 | T1 | VAT adjustment amount |
- Click Customers then click the new VAT adjustment customer record.
- Click Batch credit then enter a VAT only credit as follows:
| Customer | Date | N/C | Details | Net | T/C | Tax |
|---|
| New adjustment record | Current date | Original purchase nominal code | Postponed VAT adjustment | 0.00 | T1 | VAT adjustment amount |
- Click Bank accounts, select the contra entry bank account then click Supplier refund.
- Post a supplier refund to refund the VAT adjustment credit in full, using the same date as the credit. Read more >
- Click Bank accounts, select the contra entry bank account then click Customer refund.
- Post a customer refund to refund the VAT adjustment credit in full, using the same date as the credit. Read more >
The VAT adjustment amount appears in boxes 1 and 4 on your next VAT Return.
[BCB:97:Limitless - 50 Accounts - VAT:ECB]
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