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Lynsey Kitching

CIS transactions and payments

SUGGESTED
Posted By

With a subcontractor who is CIS registered, why can you not allocate a credit with a T0 VAT code to an invoice with a T1 VAT code?

We enter applications with the T0 tax code, which are then later credited when we receive the VAT invoice.

So last month I paid an application with the T0 tax code to ensure out VAT return is correct. I have now eventually received the VAT invoice, so have credited the application and entered the VAT invoice with T1 VAT code. I am now left with 2 transactions but cannot make a payment. What would you suggest I do?

I can also not amend any transaction after it has been paid, so cannot change them all to T1 so the VAT return is still correct.

Also on the same theme …. I have a supplier who had one invoice which fell under the CIS scheme as it was commissioning, now every time I want to make a payment, I have to allocate credits to invoices, even if they are not meant to be.

Parents
  • 0

    Hi Lynsey.

    Thanks for using Sage City.

    If you go to settings > company preferences > VAT tab, what VAT scheme is set in there please?

    Which 2 transactions are you left with? If you have an invoice on T0 and credit note on T0, you should be able to allocate these together. You should then only be left with the VAT invoice on T1, ready to pay.

    Regards,

    Sean
    Sage UKI

  • 0 in reply to Sean White

    I am left with a credit note - application T0 and a VAT invoice T1. Which cannot be paid, as they cannot be allocated against each other and I need to pay the balance which is VAT.

    A similar thing happens when I am paying a supplier who had to be CIS registered for 1 invoice because of commissioning but generally just supplies materials. 

    Sage wants me to allocate a credit against an invoice that has no relation to it to be able to pay it. The CIS status on ALL transactions is not applicable but I still can't pay without allocating the invoice.

    There is definitely a problem with the CIS add on. 

  • 0 in reply to Lynsey Kitching

    Hi Lynsey.

    it'll be best to contact us via webchat or if you have telephone support, give us a call on 0191 479 5955 so we can take a further look in to this with you.

    Regards,

    Sean
    Sage UKI

  • 0 in reply to Lynsey Kitching
    SUGGESTED

    I am going to assume this issue has been resolved but i have found when using CIS that it's not about the tax code but more so the nominal code. Is the T0 transaction & T1 transaction both related to the same nominal code. For example if both were 6004 codes (CIS Materials) then you should be able to allocate them against each other regardless of the tax code.

    If one of the transactions is a non-CIS transaction then it won't let you process the credit note. It's silly i know.

    The way i get round this is to process the payment as normal. Then process the credit as a refund. Then pay the sub-contractor manually the difference. When it comes to the bank reconciliation you just need to process the payment & the refund to get the amount you paid the sub-contractor.

    Hope this helps.

Reply
  • 0 in reply to Lynsey Kitching
    SUGGESTED

    I am going to assume this issue has been resolved but i have found when using CIS that it's not about the tax code but more so the nominal code. Is the T0 transaction & T1 transaction both related to the same nominal code. For example if both were 6004 codes (CIS Materials) then you should be able to allocate them against each other regardless of the tax code.

    If one of the transactions is a non-CIS transaction then it won't let you process the credit note. It's silly i know.

    The way i get round this is to process the payment as normal. Then process the credit as a refund. Then pay the sub-contractor manually the difference. When it comes to the bank reconciliation you just need to process the payment & the refund to get the amount you paid the sub-contractor.

    Hope this helps.

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