Sage Line 50 tutorial is designed for book-keeping software, in this blog we will teach you how to use this software. In sage line 50 blog you will learn about how to install and operate Sage Line 50 and how to install on network.

Correction of errors in Sage Instant Accounts

Question

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.

Answer

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.

2 comments:

M Suji said...

How can I delete a record once created...

aidan said...

How do I remove sales invoices that remain on Line 50 after the financial year end. We currently have six years of transactions which seem to just remain even after an audit trail clearout. We have to back up this historical information each day, but would prefer to clean them out.

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