VAT registration - back dating payment

[_DJ_]

Question for the accountants. I issued my first couple of invoices whilst waiting for my VAT registration to be processed (which was backdated).
The invoices mentioned that my VAT reg was pending and I mentioned to the clients that I was going to submit VAT only invoices once I had the details.
So, the question is, how do I raise the invoices, and more specifically how do I tell my Sage accountancy package?
I've been advised to raise credit notes for the first few invoices and then issue the invoices again, but with VAT. Any advise on whether that is the correct way to go?

thanks!

[Eric Mc]

That would work.

Alternatively, you could issue a "VAT Only" invoice i.e just enter the VAT amount in the VAT field and leave the "Net" fields blank. Whatever you do, make sure you cross reference the amended invoice/credit notes to the original invoice and I would also notify my customer(s) in advance of what I intend to do - purely as a matter of courtesy.

[_DJ_]

Thanks for that Eric. The company who I issues the invoice would prefer if I did as you said.
However, Sage Line 50 doesn't seem to want to do that (it insists I enter a net amount and it then calculates the VAT, depending on the tax code specified). So, is Sage that inflexible and do I need to mess around with credit notes as a result?

thanks,
D

[Eric Mc]

SAge can be a bit finnicky at times. If it does not want you to enter a Zero value Net amount, why not enter an invoice showing a net value of .01p in the Net field and the full VAT amount in the VAT field. The 1p can then be written off as a "Bad Debt" at a later date. I'm sure your customer will understand why you had to produce an invoice of 1p plus VAT.

[_DJ_]

Eric Mc said:

SAge can be a bit finnicky at times. If it does not want you to enter a Zero value Net amount, why not enter an invoice showing a net value of .01p in the Net field and the full VAT amount in the VAT field. The 1p can then be written off as a "Bad Debt" at a later date. I'm sure your customer will understand why you had to produce an invoice of 1p plus VAT.

It's probably me being daft, but the all it seems to want to let me enter is a) the net amount and b) the amount of VAT (as a percentage). So, I cannot see how I can do that (unfortunately). I've had other tell me that it is possible so I'll take another look at Sage and try to convince it...

thanks,
D

[Eric Mc]

On most Sages you can overide the automatic calculation of the VAT and manually insert the VAT amount as a separate entry. Indeed, you often HAVE to do this if the VAT calculated by Sage is different to that shown on a suppliers invoice, for example.

>> Edited by Eric Mc on Sunday 18th July 10:03