Hi All
I have identified an issue with allocation of Purchase Payment on Account (PP) to a Purchase invoice (PI) in a Cash Accounting environment.
Scenario;
Payment is posted (before the Invoice) as Payment on Account with Tax Code T1
Sage calculates the amounts as 57.42 + 11.48 = 68.90
Invoice is posted (in this example as VAT only invoice) with Tax Code T1
amounts are 0.00 + 68.90 = 68.90
Transactions are posted as:
Sage allows the Payment to be matched to the Invoice even though the Tax amounts are different
Subsequent VAT return shows the lower amount to be reclaimed
Beware - you may not be reclaiming the correct amount of VAT, even though you have allocated the Payment to the Invoice
Best Regards to All
Ken Cooper