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Stephen Barrett

Invoice and Payment matching; variance on payment due to contra charges

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I raise an invoice to a customer and receive payments into a linked Bank Account and want to match them. However the payment is always less than the Gross Invoice figure as I pay a management fee which varies dependant on the customers value add to the goods supplied. EG, Customer orders £1000 of goods, Completes £100 of value add so only pays £900. 

I raise a Purchase invoice for £1000 and a Sales Invoice for £100. I need both to keep the Tax man happy.

Is there a way I can match both the Purchase Invoice and Sales Invoice from a single Bank receipt of £900? On the matching screen I can only see the Sales Invoices. And keep the linked Bank Account and Sage aligned

Any help appreciated

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  • 0

    Good morning Stephen.  Thank you for your query.

    There is no way to match a Purchase invoice and a Sales invoice in the same transaction.

    Are the Purchase and the Sale (management fee i assume) being paid to the same business entity?

    If we can determine if the situation you reference is an actual Contra scenario then we can advise further.

  • 0 in reply to Alan Rodmell

    Thank you. It is the same supplier for both the Sale and purchase. And yes it is a management fee usually. I did find a post that referenced Contra Bank Accounts, is this the solution you would propose?

  • +1 in reply to Stephen Barrett
    verified answer

    Good morning Stephen

    If you need to use an invoice for the management fee then yes.... using a contra account is the best way to process it.

    If you can do without the invoice for the Management Fee then you could consider a Credit Note against a different nominal code - depending on the VAT scheme you operate the process would differ to do this (and correctly account for any VAT)

Reply
  • +1 in reply to Stephen Barrett
    verified answer

    Good morning Stephen

    If you need to use an invoice for the management fee then yes.... using a contra account is the best way to process it.

    If you can do without the invoice for the Management Fee then you could consider a Credit Note against a different nominal code - depending on the VAT scheme you operate the process would differ to do this (and correctly account for any VAT)

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