Ok new year begins 1.6.11 WE ARE CHANGING FROM CASH ACCOUNTING TO STANDARD VAT ACCOUNTING
I post all supplier invoices which are unpaid at 1.6.11to the corrrect supplier DATED PRE 1.6.11 so they are not captured in the new year post to 9998 as T1 so they do not go in cost for year but go in Vat as not previously claimed.
I post all sales invoices which are unpaid at 1.6.11 to correct customer dated pre 1.6.11 to 9998 so not in sales or current year but T1 so vat is included in quarter.
All good , now 12 months on I have all in 9998 where do i post to get rid of??
I would suggest that the balance shown in your 9998 account (assuming it is only your Vat cash accounting transactions) includes items for genuine sales and purchases for which the VAT hasn't yet been paid across because the cash hasn't been received for them. However, now that the scheme has been changed, this VAT becomes payable.
To rectify, I think you need to journal this balance across to the VAT liability account - which in Sage is normally 2202.
If you have an accountant, I would get him/her to check your journals before you proceed.
I think you have perhaps complicated things for yourself, doing it this way.
As you do each VAT return, you should be performing VAT cleardown journals, which once you pay or reclaim your VAT for that quarter, the VAT liability account should return to zero.
I hope this helps.
__________________
Author of Sage 50 Accounts For Dummies, Sage One for Dummies and Bookkeeping for Dummies
