We have farming clients who recieve a self billing invoice from their customers (typically markets), which include the gross sale figure (usualy Zero Rated) less Commission on Sales deduction (usually Std Rated).
To speed up the process of creation and matching, we typically enter both the Sales and Commission Deduction onto the Invoice. Using a negative figure for the Commission & Standard Rated VAT, but allocating it to the Cost Code. As opposed to netting it off against the Sale.
This then means that the Total value on the Invoice is a Net Figure, which agrees to the Bank Receipt (so easy to match) and that the Trial Balance shows the Gross Sales and Commission Charge figures.
However, the figures on the VAT return, Output & Input VAT and Net Sales & Purchases figures do not agree.
Please can a negative entry on an Invoice, Allocated to a Cost Code, show as Input VAT (Box 4). Rather than being netted off against any Sales Output VAT (Box 1).
Likewise can negative Net Values on an Invoice, coded to a Cost Code, appear in Box 7, rather than netting off against Box 6.
Chris D
