Vat Reconciliation in Sage

columbia

Hi all,

This may sound a really daft question, but when using Sage, sales vat is posted to the 2200 nominal code, and purchases vat is posted to the 2201 nominal code, therefore I would assume that the difference is the amount of vat liability due.

To prove this theory I ran a vat return using the same date range but it showed a totally different amount as being due.

My question is simply why is this?, and what checks can I do in future to ensure that my Vat returns are accurate?

I hope someone is able to help me.

Thanks
Tracy

Jan

The nominals need to cleared out each 1/4, either using the wizard or manually depending on which version of Sage you have. Has this been done in the past?

There are various ways of checking that the VAT figures are correct - easiest way to find out is type in Reconciling the VAT return in help!

columbia

Cheers Jan

I do clear the accounts each qtr using the wizard, and I have printed the checklists out but I still cannot work out why I have a difference!

My 2200 nominal code for Sales is showing 4362.05 on the Trial Balance to Oct 2008, and the vat return for box 1 for a date range of 01/09/08-31/10/08 is showing 7706.29. Similarly the purchases are also out.

I have looked through everything and cannot logically see why the figures are so different.

Getting in a bit of a tizzy now!

Thanks again for your quick response.

Tracy

Bluewednesday

Quick question - are you cash accounting for VAT or invoice accounting?

If you are cash accounting I haven't yet found a way to reconcile the VAT accounts, I just have to check each quarter that I am as happy as I can be with the figures produced.

If anyone does have a way - I would be glad to hear of it!!

Jan

and the vat return for box 1 for a date range of 01/09/08-31/10/08

from 01/09/08 or 01/08/08?

Or would that make things worse - now I'm confused???

columbia

Hi,

Bluewednesday - It is Standard Vat Accounting.

Jan - The reason I have only entered a 2 month range is that my last qtr was Jun-Aug 08, I am checking that my figures are currently accurate, hence the date range of Sep and Oct only!

Thanks again

Tracy

Jan

I was just about to suggest you check each month.

Have you had lunch - if not go and get some! By the time you come back your mind will be clearer, works for me

columbia

Hi Jan

I have checked each month since Jun 2007 (first date of last years financial year) to see if for some reason there are incorrect dates entered which would make my figures wrong.

Everything is fine!!!! Why don't my figures balance???????

As for lunch, I am part-time, and go home at 3! Beginning to think maybe I am looking for something that doesn't actually exist!

I need a miracle!!!!!!

Tracy

Jan

Sorry can't help there!

Good luck. Why not do something else and try again next time you are at work? It's surprising what pops into your head when you are doing something completely different. It may come to you what the problem is.

Must go, my lunch time is over!

columbia

Cheers Jan

Usually the answers pop into my head at around 3 in the morning, so roll on bedtime!!!

Jan

Same here!

PAMDILL

Are you sure that an invoice has not come in late or been sent out late, I generally click the button that says include earlier unreconciled transactions.

Quite often that solves the problem.

Either that or there are transactions which have a VAT code which does not appear on the VAT Return.

K H

sage vat

When you do a manual reconciliation are you taking into account the vat actually paid over to hmrc in the period in code 2202?

or try running day book prints in the suppliers and customers for this period this should highlight any diffs.

K H

columbia

Thanks guys

Weird thing is I have done all these things and still cannot seem to locate the problem!

Been tied up with other things at work all day today, and at college tomorrow, so will either be spending all day Friday on it, or all over the weekend!!

Fingers crossed that with fresh eyes on Friday I will finally be able to work it out!

Many thanks again

Tracy

Jan

Please put us out of our misery when you find it! :laugh:

Nothing to do with year end closure? Cash transaction through bank payment/receipts. I'm clutching at straws now, for you!

columbia

Hi Jan

Just about to restart my workings. Think it is a year end closure issue, thanks for your concern!!!

Tracy