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Incorrect VAT on purchase order when using settlement discount

Created on  | Last modified on 

Summary

When your supplier has a settlement discount, purchase orders show an incorrect VAT value in Sage 50 Accounts.

Description

Updating a purchase order with a settlement discount to the ledgers before you deliver it, Sage 50 Accounts reduces the VAT by the discount.  The software normally displays the full VAT amount.

Resolution

As a workaround you can mark the purchase order as delivered before you update it to the ledgers. Alternatively, when you update to the ledger, you can manually correct the VAT amount:

  1. On the navigation bar, go to Purchase orders.
  2. Select the required order, then select the Update ledgers option.

This opens the 'Purchase Order Update' window.

  1. Select the Edit option.
  2. Enter the quantity received, then enter the correct Total Tax amount.
  3. Press Save, then repeat step 3 for any further item lines.
  4. To update to the ledgers, press Update on the 'Purchase Order Update' window.
  5. Check or amend the invoice details as required, then press Save.

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