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Sage 50 journals - VAT return boxes 1 & 4

Cannot reduce values in box 1 or 4 from Sage 50 journal

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As Sage say with Sage 50, "When you post journals to adjust the VAT Return you cannot reduce the values in a box, you must increase the values in the opposite box. For example, if you want to decrease the value in Box 1 you must increase the value in Box 4." (From https://my.sage.co.uk/public/help/askarticle.aspx?articleid=14697.)

A journal credit with T1, standard rate VAT, will always go to Box 1, a journal debit to Box 4. Not distinguishing between input and output VAT.

So, the VAT is correct, but boxes 1 and 4 may be higher than wanted.

How much of an issue is this?

An alternative which gurantees the right entries on boxes is: for output tax, to post invoices to a dummy customer account, or for input VAT, to a dummy supplier. Which also forces use of debtor or creditor control accounts.

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14th May 2019 16:37

Yes, good old Sage. A typical issue I encountered was Sage's inability to account correctly for a refund on the company credit card.

I always (used to) make a manual adjustment for this nonsense. before transferring the numbers to the HMRC template.

I appreciate this presents more of an obstacle if you are auto-filing through the Sage platform or operating MTD.

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14th May 2019 17:02

I agree with Andy.

MTD increases the chances of incorrect figures appearing on returns.

No software is as smart as real people. It just does sums quicker.

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