Bank Reconciliation Software

SAGE Line 50 accounting software - Tax guidance?

Sales were made, sales have tax charged, but payment receipts from customer show only the original amount was payed - no tax. A £200,000 bill, £235,000 after tax, was payed off in 2 installments of £50,000 and £150,000. The remaining £35,000 shows as an oustanding balance on SAGE. What to do? (Theoretical study question, I'm not in charge of any money, dont worry....)

Public Comments

1. when the receipts were entered did you ensure that the tax code was correct? use the journal entries key to Dr/Cr the tax a/c and the customer A/c.
2. can you specify a little more??? according to what you are saying, the customer failed to pay 35,000. Right? In this case you need to bill him for the rest. Unless it was not showing on the invoice.... or he may be tax exempt if possible in your country, which you will need from the customer an exempt certificate to keep for your records.(in case of audit). That's All i can say to help cuz I don't really understand your questions. Plus I am in US
3. it looks like the £35k is the VAT element of the £200k bill. this needs to be chased unless they should not have been charged vat.