I ahve trawled through previous posts but cannot find the answer.
I am performing a VAT return using SAGE and am happy as far as the calculate and reconcile. I therefore have my figures for the return.
I am now having a mental block with the journel entries I need to do to clear the control accounts.I have dug out my manual books but that block will not budge.
Can anyone help me through the next bit in terms of CR and DB
It's Dr 2200 Sales Tax Control account (with the output VAT amount) and Cr 2201 Purchase Tax Control account (with the input VAT amount) and Cr 2202 VAT Liability account (with the net VAT payable) (assuming that it's VAT to be paid over to HMRC and not a refund situation) Have you tried using the Sage VAT Transfer Wizard, which will do the above journal automatically?
No, it's not the complete reverse, if it's a refund situation. If there is no output VAT at all on the sales, then the journal would be: Cr 2201 Purchase Tax Control account (with the input VAT amount) Dr 2202 VAT Liability account (with the net VAT refundable)
But if there were some VATable sales, you might still have to Dr 2200 Sales Tax Control account (with the output VAT amount), but there would still be an overall debit to the 2202 VAT liability account.
The wizard is really straightforward to use. But you must have finished and reconciled the VAT return on Sage first. Take a backup before you run it the first time, so that if it all goes pear-shaped, you can restore the backup.
