Hi, can anybody please advise me how I can erase sales invoices and sales payments which were entered incorrectly? I cannot use maintenace-error corrections, because the items have been reconciled on a VAT return.At the moment the customer account is nil but only because it contains an incorrect posting of invoices and an incorrect posting of a payment. I need to do something that reduces the turnover figure and corrects the bank balance.
You should not be using the Corrections facilities for adjustments - can cause problems. For a clean audit - Journals should always be used, or, if you have not paid purchase or sales invoices - the corresponding opposite entries of credit and debit notes.
Re your situation - Journal - DR turnover net amount / credit bank gross and DR Output VAT - remembering to put T1 code to bring this back into the next VAT report you run.
This is the simplest method - but the Sales ledger will not show your adj. If you wish to register the error through Sales ledger you must:
Raise a credit note for wrong amount - say £1000.00 plus VAT etcRaise a new invoice for correct amount - say £800.00 plus VATRaise another internal invoice for difference coded to misposting account say £200 for simplicity ignoring VAT - but this would need adj also
You then go into bank and pay these 3 items, which clears all to Nil, and the bank will not have any adj either - as nil.
Now journal from Bank DR diff and CR misposting to clear mispostings and adj bank.
Entries on turnover would be:
original CR £1000.00Credit note DR £1000.00CR new invoice £800.00 - net affect £800 which is correct
Entries on bank would be:On bank original DR £1000.00Payment of invoices - NIL as contra each other - clears sales ledgerJournal to clear misposting via bank - CR bank say £200.00
Net effect on bank DR £1000 / CR £200 = £DR £800.00
Sorry if this is a bit confusing - but its only if you wish the ledgers to reflect the errors. if not, and you keep a log of journals, or print out the sales ledger and keep this with journal - you can go for the simpler first method.