VAT return on SAGE

Grit

I have a part VAT return to do (company was part of a group under a group registration but split on 10/03/08

So I am preparing a VAT return up to this date and then the rest will form part of my VAT return in June.

I have not done this before on SAGE, I had discrepencies when I compared the nominal activity to the VAT return, I have identified these as unreconciled transactions with a date prior to 01/02/08.

Now this may sound like a stupid question but what do I do now? Obviously I want to reconcile these transactions along with the others, so the tax return is correct. What other journals etc do I have to make. How do the discrepencies affect things.

I know I have to make some journals to clear out the vat reconciled.

Thanks

edkav

Hi, firstly make sure you take a backup before reconciling the VAT! After you have flagged the transactions, you need to post a VAT transfer journal so that it clears the vat from the purchase and sales account into the VAT liability account (post the payment or refund here which will clear it down). This will be for example
Sales tax = £100
Purchase tax = £50
DR CR

Sales tax control a/c 100
VAT Liability 100
Purchase tax control a/c 50
VAT Liability 50

Payment to HM Revenue £50 post to VAT Liability account, which leaves nil balance.

Hope this answers your query. Failing that, you could always use the VAT transfer wizard in SAGE!