Recording Refunds (VAT Cash Accounting Scheme)

If you are running the VAT Cash Accounting Scheme, you are only liable for VAT on your invoices less credit notes, either when you pay your suppliers, or when you receive payment from your customers. If you need to record a refund or a cheque return you must include adjustments for your VAT. Because of these VAT adjustments, you must not use Sage Line 50Æs Write Off, Refund, Return wizard to record your refunds and cheque returns as these options make no adjustments for VAT. If you are using the VAT Cash Accounting scheme you must use the manual refund method.