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VAT Reconciliation with Cash Accounting

I'm trying to check a VAT control account value to see if it is correct, but I can't seem to come up with a simple way of checking the value from the reports on my system. How do others do it?

Neil Wilson

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By iknell
20th May 2005 14:18

Beware payments on account!!
A further twist occurs if you or your customers make payments on account. I've yet to find an all encompassing solution that is totally infalable

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By Anonymous
20th May 2005 12:18

Try This!
This is not infallible, but if the accounting system will allow it, try printing a VAT return from the end of the last VAT quarter paid to the date of the reconciliation. Add on to the figure shown the VAT due on Debtors and subtract the VAT due on Creditors. This should be within a reasonable distance of the control figure. However, it's a nightmare to do if the client has a mixture of standard and zero-rated supplies and inputs!

I am assuming that the control account is net of payments/refunds.

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20th May 2005 14:36

try this as per Eddie
if you are on cash accounting then by definition you owe VAT on accounts receivable less accounts payable.

simply get a report for a/r with the vat element and one for a/p and deduct

and hey presto


there are times when this will not work but i aint going into it here...

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By NeilW
20th May 2005 17:49

Mmmm.
I thought it was the VAT due on the Sales Ledger, plus the amount collected since the last VAT return, less the VAT to pay on the Purchase Ledger and that already paid out to suppliers since the last VAT return, plus 17.5% of any unallocated receipts/overpayments.

NeilW

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