Hello
I have a Sage question which I am hoping you can help me with.
I have a client who uses Sage to produce her VAT returns and is cash accounting, I have checked the setting in Sage and this is set up correctly.
Each year when I produce her accounts I check the last VAT return to the 3 VAT codes on the TB which always agree to the liability. This year this balance does not agree by approximately £1000.
I have confirmed that the B/F agrees. I have run the VAT return for all the quarters for this year and each quarter there is a different difference. My client confirms that she has not changed the way she posts to Sage and I can not see any rogue entries and the data is not corrupted.
Does anyone have any ideas as to why this is happening?
Thanks
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Replies (3)
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Cash Accounting
On Cash Accounting, whilst the return obviously picks up receipts & payments, the Tax Control Accounts are still updated when invoices are saved regardless of whether they are paid or not so, unless every invoice is paid, I would not expect the VAT Return to agree with the Tax Control Accounts.
John
VAT creditor reconciliation
In cash accounting cases I like to produce a reconciliation along the following lines:
£ 2,000.00 VAT liability per cash a/c basis VAT return
£ 500.00 add VAT included in debtors
£ (400.00) deduct VAT included in creditors
---------------- -------------------------------------
£ 2,100.00 Net VAT liability
============================
Then Sage NL accounts 2200, 2201, 2202 should net off to the figure arrived at above.