Hi
for the last 3 quarters vat returns my journals have not shown on the vat returns, I think they have automatically gone on as t9 instead of t1. Can I go back and change them or should I reverse them and add them on to my next vat quarter.
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Replies (6)
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Journals are automatically set to T9 so if you didn't manually change it then it will be excluded from your VAT.
Sorry if you already know this but you do have to split the VAT on your journals as well. It doesn't calculate it for you.
You can do either, personally I would potentially reverse and redo as you wouldn't have to redo the whole journal just the VAT element of it.
I also would worry if any journals where being used to input information from elsewhere (such as totals from columns in spreadsheets), which under MTD for VAT is not permitted, as a digital link would need to be created so that the information isn't typed in manually.
All vat boxes in sage are prepopulated, you have to consider and override the correct tax code for every line, although some can be preset. If you’ve been using sage for this long that much should have been obvious already.
Also it sounds like you are not doing any kind of vat recconiliation nor checking the detailed report before submission.
If vat or bank reconciled in sage do not delete. Do adjusting entries.
Problem is that the journals with vat element generally populate the wrong boxes although the vat take will be correct. So generally better to use invoices/credit notes to get the desired results, you can have a play around in practice mode to see what impacts all of the suggestions so far will have, so you don’t make a mess of the main data.
Would be handy to know why you are trying to make vat adj via journals. It should be necessary every quarter.
To be fair to sage 50 support if you ring 0191 4795953 i normally find that the level of support is pretty good compared to online equivalents where invariably a simple raised ticket question gets a reponse that doesn't even attempt to answer the technical detail of the question !
I think we are all agreed in this case sage is working exactly as specified
- one very useful tool i have learnt with online and similar software is to immediately (check total before and after posting that entry!) check any quirky vat entries flow through to vat return as one would expect - this only takes a minute or two normally with most packages and avoids trying to find that needle in the haystack later where the entry is in the vat sytsem but not on the return due to gremlins (normally user error or user naivety here i am afraid)