I have a client who has recently registered for VAT. I have set this up on SAGE and manually worked out the figures of his pre-registered VAT to reclaim.
Can someone please confirm the journal i would have to do in order for the VAT to be claimed?
I'd rather have a second opinion before i go ahead and do it!! Many thanks in advance
Actually, you should post the debit (to 2201) as T1 and the credit (to wherever the original gross costs were posted) as T9.
What Sage does to include in the net outputs figure on the return any Journal Credits that are in scope for the return (such as T1) and which are outside of 2200/2201.
If - as is probably the case - the amount of VAT in question is relatively small, the effect won't be significant - but if the amounts aren't so small, the result is a VAT return with outputs VAT that is noticably less than 20% of the net outputs.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
I usually just set up an "adjustments" bank account and use that to pick up VAT items (or whatever), and then I just journal the balance out to wherever it goes.
