RCT Sage 50

Wondermum

Have used Sage 50 for years but never used RCT before. How do I post these entries to Sage 50, we are the Principal Contractor. I have an invoice from the sub contractor which shows no VAT as I know I have to account for it, the subcontractor has 20% RCT deducted from the invoice as advised by Revenue. How do I post this to Sage?

Synode

You should set up a new VAT code to self-account for the VAT. The supplier invoice gets posted using this new code.

For the payments, the one to the supplier (80%) gets posted and allocated against their invoice. There's a few ways to do the RCT (20%) postings. I normally:-

• Set up a fake 'RCT' bank account. You need to do this as you can only post payments to a supplier account on Sage from a bank account. The RCT you deduct gets posted as a payment from this fake bank account to your supplier account - Debit creditors, Credit fake RCT bank account
• Then when you pay the RCT over to Revenue - Debit fake RCT bank a/c, Credit real bank account

McTigs

I simply print out the deduction from ROS and put it on the creditor account as a credit note, posting it using the nominal code I have set up for RCT.

The payment gets allocated in full against the invoice and credit note.

At the end of the month I run an activity report on the nominal code for RCT which prints out a list of the dummy credit notes entered for that month and compare it to what's logged on ROS for completeness.