Sunday, May 26, 2013

vat cash accounting: allocating invoices, credit notes, payments on account

If you are on VAT Cash Accounting, neither Sage 50 or Instant will allow you to allocate an Invoice to a Credit Note if the tax codes do not match.

To overcome this and to allow the allocation to take place, do the following:
  1. 

 Go into Error Corrections and change the tax code on either the invoice or credit note so that both tax codes match. This does not change the VAT amount so has no effect on your accounts. 

  2.  Allocate the transactions as normal. 

  3. Go back into Error Corrections and change the tax codes back to what they should be.
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