I have a file which has a balance on the purchase tax control account of £110.99 which relates back to 1 June 2013. The item falls into the 1 May 2014 year end, which has been completed by the Accountant.
Ive drilled back and the cause is due to the VAT element on an invoice being keyed as a journal entry (in sage with T1). This has never picked up on the VAT return (due to it being keyed by journal!).
(The one off bill was keyed as a journal via the DLA as it was paid personally, instead of the method I now use of setting up and keying items via a 'Directors' Bank)
My thinking now is to include it on the next VAT return as an adjustment - just wanted to check my thought process given its Sunday and Im still half asleep!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Just to clarify one little niggle: The reason Sage didn't pick up the transaction for the VAT return isn't because it was input as a journal: Sage can and does include journals on the VAT return if they have the correct tax codes - depending on the scheme in use.
Where it doesn't, it's usually because it's being operated on a cash basis, wherein it doesn't recognise the journal as a payment or receipt.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Hi Vince
Its standard VAT this one, keyed as T1, but was done on quite an old version of sage - have checked and re-checked and its never been on the VAT return so at least Im happy with that part of it. I assumed it was due to it being a journal. I did get my son to try one in the newer sage (v21/2015) in the practice data option and that didnt seem to show, but now Im wondering if he missed it - so I will go and have another look and even try a few more items. Will try to remember to let you know the outcome. Thanks for the heads up.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Journals definitely show up on the VAT return in my version - I just checked to make sure I'm not going bonkers! That's v19 (2013). I'm very confident they would have done quite a few years prior to that - I don't know how far back though.
Think about it: Why would the journals screen need a tax code column if not? (You mention it's an old version, but you said you keyed the journal with T1)
And if you view the VAT return and double click on any of the figures to see the VAT breakdown (on a version new enough to allow that) then one of the columns should be either journal credits or journal debits, depending on which figure you clicked on.
Whether they are included should depend on the tax code and the VAT basis (as I said, I don't think they will on a cash basis - but TBH I haven't checked. Although a niggling voice is saying perhaps they should.)
And where they are included should depend on the nominal code used, and whether it's a debit or a credit. (A credit should result in it being included in the inputs, and a debit on the outputs - and if it's 2200 or 2201 it should be in the VAT figures, with anything else going into the net.)
So on the face of it, why this particular transaction isn't showing up is very odd.
You mention it's an old version of Sage - how old? And have you tried loading it in something newer? (Since the transaction hasn't been included in a return already, a newer version that does include journals should pick it up.)
Or perhaps there's something odd about the journal that means it hasn't been included?
(Can you post the relevant aspects of the journal here? All the debit and credit aspects, with the nominal codes, tax codes, and amounts for each?)
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Could it be that whoever posted the journal only posted the net with a T1 code and expected Sage to work out the vat? The actual vat has to be journaled to the vat control also with a T1 code. Apologies if this is obvious and you've already checked.
