Just wondering if on Sage whether the nominal code 2200 Sales tax control account should be the exact same amount as codes 2201 Purchase tax control account added to 2202 vat liability?
2202 is VAT liability which is the net balance of 2200 and 2201 transferred at the quarter end which is then cleared out by the resultant VAT payment for the quarter
Thanks Mark. So if the difference between 2200 & 2201 isn't the same as 2202 once the previous quarter has been paid does that mean something's gone wrong?
On a day to day basis, the VAT element of the transactions you enter in Sage is recorded in 2200 and 2201; the VAT element of sales invoices, bank/cash receipts, etc, is credited to 2200, and the VAT element of purchase invoices, bank/cash payments, etc is debited to 2201.
So, over the course of a VAT quarter, the balance on those two accounts build up and contain the amount owed to (2200) and from (2201) HMRC.
When you process your VAT return and run the VAT transfer wizard (now in VAT tasks), Sage posts a journal to move the output and inputs VAT out of 2200 and 2201 and into 2202. It debits 2200 with the outputs VAT shown on the return, crediting it to 2202, and it credits 2201 with the inputs VAT, debiting it to 2202.
At this stage, therefore, 2202 contains the net VAT due to be paid (a credit balance) or refunded (a debit balance) for that quarter. When you make that payment (or receive that refund) it goes into 2202 and, effectively, returns the balance on that account to zero again.
2200 and 2201 _may_ now have zero balances showing on a TB at the date of the return. (And if you are on an accrual basis, probably should - but if you are on a cash basis, it's a whole different kettle of water-breathers.)
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
