Hi Ken,

Thanks for using Sage City.

Under the VAT Cash Accounting scheme it is the payment amount that is picked up on the VAT Return not the Invoice so in this scenario the £11.48 would be the correct amount picked up.

However if the invoice you have raised is for VAT Only, you'd need to manually correct the transaction via Transactions > Edit and change the net amount to zero and the tax amount to £68.90.

I've noted your feedback and will discuss it with the product delivery team to see if we can handle this better for VAT Cash Accounting users doing VAT only Invoices.

Kind Regards,

Ian

Sage UKI

Hi

I agree that in a Cash Accounting scheme, the Tax reclaimed is detailed on the Payment, however, I would expect Sage to warn about a mis-match of Tax amount between Payment and Invoice, when the payment is sub-sequentially matched to the Invoice, as it does when the Tax codes are different.

I also understand that Sage does the calculation automatically, but, does not give the User the opportunity to change the values, which I think it should.

I would not use the Edit functionality in this type of scenario -

I would reverse (refund) the original Payment on Account, matching at the same time.

and re-post the Payment, matching against the Invoice thus picking up the correct value from there  

This, to me, is the correct way to process these transactions

Best Regards

Ken 

Hi Ken,

Thanks for that extra information.

That feels like a reasonable expectation that the program would warn you of this. I've emailed the product owner to make them aware of the issue and asked our knowledge team to update help documentation to reflect the current flow until we can address it. Your suggestion of a warning is something I imagine we can do.  

Regards,

Ian

Sage UKI