I have a VAT return to do for the period ending 30th April 2014. I don't use Sage that much it's just for 1 client.
Looks like I have made of mess of it already. I had an issue that I posted on here a few weeks ago and it still exists.
I have a net Sales figure in box 6 that shouldn't be there and have no idea what I have done that would have put a figure in there.
The company operates on a Cash Accounting basis and so far has had a few purchases. There has been a sales invoice raised but has not been paid so no sales should go through the VAT return.
I have experience of VAT returns as I do them in my main job and have very few issues with them and I am talking about a company whose accounting is more complicated than the one I am trying to deal with.
As I am not very experienced in Sage I am looking for a bit of assistance or actually it might be a lot of assistance.
I have run day book reports for both purchase invoices and Sales invoices even though I have no Sales to go through the VAT return.
The day book doesn't match with what is showing as net purchases nor VAT due from HMRC.
Sage is set to Cash Accounting. I have no Sales to go on the VAT return. I have purchases, some with VAT and some without.
I have paid some bills on behalf of a parent company who has no bank account set up and I think it is these transactions that are causing the issue.
They are journal between one bank account and a loan account to the other company.
I am puzzled how they have come to appear in box 6 when the journal is between 1200 and 1210.
I am not very experienced on Sage as don't really use it so I am guessing the journals I have posted have been done is some way that they have ended up in box 6 on the VAT return.
I went in to "Company", "financials" and then "journal". Is there any other way to do journals?
I have run the return and also printed off the daybooks. Even the purchases don't tie in.
I have done VAT returns at work for the past 6 years and never done a monumental cock up like this.
If I have differences I can always find them and the system is far bigger than Sage.
I am sure it is something simple but as I lack experience I cannot find where I have gone wrong.
It's my first VAT return for the company so I wanted to get it right, also never submitted them through HMRC I usually do the prep work and my boss submits so i was looking forward to this. Now I am dreading it. I am sure once this issue is resolved I won't make the same mistake again! Well hopefully not.
Sage is set to Cash Accounting. I have no Sales to go on the VAT return. I have purchases, some with VAT and some without.
OK
I have paid some bills on behalf of a parent company who has no bank account set up and I think it is these transactions that are causing the issue.
THESE TRANSACTIONS LEAVING THE SUBSIDIARY BANK ACCOUNT, AND BEING POSTED ONTO THE SUBSIDIARY SAGE, WOULD BE POSTED AS T9 BANK PAYMENTS, STRAIGHT TO THE INTER-COMPANY LOAN ACCOUNT CREDITORS CODE, SO NO IDEA WHY THEY ARE AFFECTING SALES VAT?
They are journal between one bank account and a loan account to the other company.
WHY NEED THE JOURNAL WHEN CAN POST BANK PAYMENT AS ABOVE?
I am puzzled how they have come to appear in box 6 when the journal is between 1200 and 1210.
CAN ONLY ASSUME YOU POSTED THE JOURNAL AS T1, NOT T9
I am not very experienced on Sage as don't really use it so I am guessing the journals I have posted have been done is some way that they have ended up in box 6 on the VAT return.
I went in to "Company", "financials" and then "journal". Is there any other way to do journals?
AGAIN NOT SURE WHY JOURNALS ARE BEING USED?
I have run the return and also printed off the daybooks. Even the purchases don't tie in.
JOURNALS DONT APPEAR ON DAY BOOKS, AND POSSIBLY A T1 JOURNAL IS CREATING THE ISSUE
That sounds like your issue. T9 is the code that doesn't go on the VAT return, T2 shows in net.
Some people do set Sage up with T2 as the non VAT code and T9 as the 0% or exempt code, but T9 is usually the "out of box" default. Codes don't matter as long as you understand what you need to use to get what you want. You can check how the codes are being used in configuration.
Is it possible to turn off T2, in configuration, to get what you need for this return? Then turn it back on again later?? (You do this by unticking the "include on VAT return" box.)
Moving forward, if the subsidiary bank account is paying parent costs, this is better posted as a T9 bank payment to a creditor code that has been set up as "Inter-Co Loan Account"
