Sage VAT Return Query

We have a VAT registerd partnership and my husband also has a non VAT registered business.

I found that I made an error on an entry in the partnership accounts in December 2009. I entered an invoice that should have been for my partner's non VAT registered business and reclaimed the VAT on it which was £92.66. The entry (trans 92) was included in the VAT return dated 31st January 2010 and VAT reconciled. It had been paid in error out of the partnership bank account.

When I noticed the error recently, I corrected it in the Maintenance, Corrections window, changing the nominal code to Drawings (3201) and changed the VAT code to T9. This created trans 742 which was a counter BR with the same VAT and nominal code as the original BP.

The new BP created by Sage when I performed the correction has a T9 VAT code and nominal code of 3201.

When I calculate the VAT return dated 31st October this year and agree when asked to include the transactions from an earlier period, Box 6, Total Value of Sales excluding VAT is higher than we believe our sales figures should be. When I drill down in Box 6, Total Value of Sales, excluding VAT I see that trans 742 is listed (under the old T3 code which I used for 15% VAT that was applicable at the time of the transaction).

I understand why the VAT payable would be £92.66 higher as I have claimed this in error and must repay it but I don't understand why the Sales figure is higher than our actual sales for the quarter.

I have also noticed that a refund where VAT was paid back is included in the Sales Total. It has a nominal code of 6900 miscellaneous expenses. I expected only those nominal codes which we use for Sales (4000 and 4001) to be listed when drilling down to the VAT Breakdown from Box 6.

I'm hoping someone can explain why Sage includes these transactions when it calculates the Total Sales figure and whether I should go ahead and process the VAT return or if I've made some sort of mistake.

Thanks.

I'm a new member so if I've posted this on the wrong forum, please accept my apologies.

Comments
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It's because it is a receipt.

ChrisDL |

Help Please!

FiFiFu |

Sorry for confusion

ChrisDL |

The net VAT will be right

Chris Smail |
Chris Smail's picture