VAT allocation of receipt

Question

The VAT on a sales invoice is one figure but the allocation when the payment is made is different - why is this and how do I correct it?

DJ Byrne · Answer

Hi Valerie, 
 When on VAT Cash Scheme, if you raise a payment on account, the system will ask you to select a VAT Rate. Then when the invoice is raised with a different VAT Rate, this would cause the difference you mentioned above. 
 To correct it, you would need to delete the Payment on account, this will mark the invoice as unpaid and will allow you to pay the invoice and it will use the VAT Rate on the invoice this time. 
 If this has answered your question please click More > Verify Answer. 
 Thank you,

Sage Accounting UKI

VAT allocation of receipt

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