Hi
I am using Sage 50 for the first time (I usually use sage 200) and I don't understand the VAT posting the system does for you for the VAT return.
The first VAT return was all EC sales so no VAT and vat on purchases meaning a refund of £ 277.08.
The system cleared down the vat return for me and showed it as a receipt on the bank awaiting reconciliation - all fine with me.
Now I'm onto the second return again all EC sales so I should have nothing in box 1 - however the system is showing the £ 277.08 - any ideas please ???
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Replies (4)
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Reconciliation?
Sounds like you didn't reconcile previous quarter. Done it myself.
Recommend you run a vat report for the two quarters, print off and then subtract previous qtr values from each box, leaving you with true quarter 2. Excel or small handwriting- it's up to you.
Then let Sage reconcile the entire 6 month (I presume) period- I'd do the VAT transfer by my own journal instead of the so-called transfer wizard.
Hope this sorts you.
VAT Return
I assume that the VAT Refund has been processed through the accounts? It would suggest that it may have been entered with a VATable tax code so I'd have a look at that particular transaction.
John
Thanks for the responses - yes the journal to clear down the VAT account has gone through with a code of T1.
VAT Journal
If that is the case then you need to check that the Non Vatable tax code is set correctly - Settings -> Company Preferences -> VAT
John