Please can someone advice me, I'm feeling so stupid but do not fully understand what you can and cannot do after reconciling & flagging the VAT account (Sage Instant). This is in a practice exam scenario, but I guess could happen in real life.
What I am wanting to know is, once I have transferred the balances of Sales and Purchase tax accounts to the VAT Liability account (by journal entries) and I subsequently find an error in one of the postings, (say involving sales and bank account and I then correct the posting but this causes a balance to be left on the VAT account), can I go back in and re-calaulate the VAT by reconciling the VAT again - or is this something that you can only do the once ?
-- Edited by Tom on Tuesday 7th of June 2011 10:36:26 AM
Once the VAT has been reconciled it cannot be amended. You can however complete a reverse entry (enter a credit to correct an invoice) or go to maintenance and delete. I do however always ask my clients not to delete if reconciled as it does make a mess trying to trace the audit trail if required, a reverse entry is much neater. When you complete the next VAT return INCLUDE unreconciled previous entries and you will note the entry will then be included.
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Donna Curling - Complete Book-Keeping Ltd (CBKLtd) - 07939 101900
