Assigning Payments On Account

From the bank feed, if a payment to a supplier does not match the purchase invoice exactly, there is the option to record it as a payment on account and assign it later.

I have 2 questions:

  • why, when the payment on account option is chosen, does a VAT box pop up? Surely the accounting is Cr Bank, Dr Trade Creditor - No Vat involved
  • how, do I subsequently assign the payment to an invoice or invoices?



Hi @James-5

Are you on cash accounting for VAT? If so, VAT needs to be recorded on the payment itself. If it’s a different rate to the invoice, this will be adjusted when it’s assigned.

If you view the invoice, you will see a “Log Payment” option at the top:
Clicking this will reveal an option to “Assign from credit”

The other option is instead of applying to an account, you could mark it straight off the invoice when tagging. When you enter the clients name you should also be given a list of outstanding invoices to apply it to.

Hope that helps!

Hi Mathew,

I should have twigged re VAT Cash Accounting - I’m actually on Accrual Accounting

I’ve now found the payment option.

Thanks a lot!


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