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How do I manage self-billing in Sage 50 Accounts?

Created on  | Last modified on 

Summary

This article explains how to apply self-billing in Sage 50 Accounts.

Description

Recording self-billing in Sage 50 Accounts is easy to do and is very similar to posting your normal sales and purchases.

Self-billing is simply an arrangement between a supplier and a customer, where the customer prepares the invoices and then forwards them to the supplier with the payment. It cuts down on administration, reduces late payments are generally makes the invoicing cycle more efficient.

Resolution

If you're the supplier

When you receive the invoice and payment from your customer, simply post the sale as normal depending on whether or not you use stock control:

Sales invoice (SI)

Record the self-billed invoice from your customer as follows:

If you don't use stock control - Record the invoice as a batch customer invoice. 

If you use stock control - You can either:

Sales receipt (SR)When the invoice is paid enter a sales receipt (SR). 

If you're the customer

Simply record the purchase invoice and payment as you normally would and send a self-billing invoice and payment to your supplier:

Purchase invoice (PI)

Record the purchase as follows:

If you don't use stock control - Record the invoice as a batch supplier invoice (PI). 

If you use stock control - You can either:

  • Sage 50 Accounts Professional - Record the purchase using the Purchase orders module and update the order to the ledger. This creates a purchase invoice (PI) and adjusts stock in.
  • Record the invoice as a batch supplier invoice and then post a stock adjustment in (AI).
Purchase payment (PP)When the invoice is paid, enter a purchase payment (PP). 

NOTE: A self-billing invoice must be sent to the supplier. There is no specific option in Sage Accounts to print self-billing invoices. If you are using the Purchase orders module in Sage 50 Accounts Professional, you can print the order using a customised layout. It is you responsibility to ensure this meets HMRC's self-billing requirements set out in HMRC Reference:Notice 700/62.

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