I am working at new clients and they have been filing and paying VAT returns. The problem is there is an unassigned amount from the feb/apr 12 return. This means that they haven't closed the returns off in Quickbooks. Any suggestions how I would deal with this?
I am also reconciling their bank statements and their are payments not in QB dating back to Oct 13 which obviously affect the already filed VAT returns. how is it best to input them into QB? Some have VAT and some don't I know I can adjust errors to the VAT return as they are relatively small amounts.
Hopefully one day I will post something that helps everyone else but in the meantime thank you for all the fab help on here.
Alison
-- Edited by Meadowlands on Thursday 27th of February 2014 02:57:33 PM
If you definitely mean they are "unassigned amounts" then this means that some transactions have been posted (probably through journals) that haven't been correctly dealt with in QB. When you post a journal in QB that includes amounts for VAT to the VAT control account then each net amount must have HMRC as a Supplier and the correct VAT item assigned to it. If you do not do this then QB doesn't know where to assign the VAT and so puts it in an unassigned category. This is not included in the VAT return.
To find out what these transactions are you need to run the Unassigned VAT amounts report (Reports - VAT - Unassigned VAT amounts). If they should be included in the VAT return then you need to double click on them and assign the correct tax code to them.
With regard to the bank items not posted, just go ahead and post them as normal and QB will pick up the VAT on the transaction and include it in the next VAT return (it will show at the top of the list in the VAT reports as a b/f amount. You may get a warning that the transaction affects prior VAT reports, but click on ok. This assumes that there has been no password set to prevent you doing it.
I have now been back through the VAT and have some transactions that are now showing in the QB VAT return that make it different from the one that was filed.
Box 7 is approx £12k lower on the return that was filed
box 9 is £2k lower
I have identified the transactions but not sure what the best way to make the adjustments is as they have been reconciled and paid for.
What is the best way to correct these? the VAT paid matches that on both.
Are these transactions in a previous return that has already been filed, and they were missed in the previous return? Has this previous return been filed in QB? QB should pick up earlier transactions in the present return, but to make sure, run the return for the last 6 months and deduct the figures from the one that has actually been filed from the present one and submit that. Do you actually file the return through QB or do you log on to the internet to submit?
The returns have not been filed in QB they have been done online. When my predecessor was reconciling the bank statement (which hadn't been done before the VAT) I think they have added in missing transactions so now when I try to run and then close off the VAT returns the figures don't agree with what was submitted.
Sorry if I am being thick but I have never had to unpick VAT like this before. I know which transactions are affecting the VAT figures. One option is to alter the date on the offending transactions, close the return and then reenter them so QB picks them up. Would that work - it isn't for lots of transactions. Or should I do a journal and if so what entries. As it is box 7 & 9 I couldn't do adjust box.
I think the company are getting frustrated its taking me so long but because they have been without a bookkeeper for a while things are in a right mess and I want to clear it up so going forward everything is in the correct place and VAT can just be done etc. without hours of unpicking. They hadn't done a bank rec since the end of Sept!
So they have never filed or closed off any VAT return at all? QB picks up transactions that were entered after the VAT was filed, but if no return has ever been filed I can understand your predicament. I think what you have suggested, about changing the dates, closing the return and then re-entering them so QB picks them up in the next return is probably your only option. As long as they are the correct date for the bank rec, or that isn't going to work.
thank you - you are a star. They have closed off VAT returns in QB, the last one was to end of Jul 13 then their accounts lady/bookkeeper have been off sick so one of the girls has been covering and doing her best. I think I will print off the offending transactions and then alter the date, close VAT and then reenter. Long winded but it should work!
