I am preparing a Vat return for a client and came across something rather odd.
There are quite a large number of historic, unreconciled VAT transactions which should ideally be included with my next VAT submission.
The problem is that the first 3 quarters VAT returns in the 2020 tax control account journals are just sitting there as unreconciled transactions.
However, they are in fact reconciled on a quarterly basis and listed on VAT return window.
I ran a test with all unreconciled transaction included. The VAT report shows a huge negative balance on box 5 - a big VAT refund from HMRC, but I am not sure if this is correct.
I am trying to understand the following:
3 JC 2201 - purchase tax control account BL is adding up into box 1
3 JD 2200 - sales tax control accounts BL is adding up into box 4
These journals match the exact amount for the 3 quarters Vat returns but I don't know why they are still showing as unreconciled VAT transactions.
Secondly they are the wrong way around on the Vat report details.
Your advice and suggestions would be very much appreciated.
Kind regards
Hana
-- Edited by Hana NB on Saturday 13th of May 2023 06:14:06 PM
I am preparing a Vat return for a client and came across something rather odd.
There are quite a large number of historic, unreconciled VAT transactions which should ideally be included with my next VAT submission.
The problem is that the first 3 quarters VAT returns in the 2020 tax control account journals are just sitting there as unreconciled transactions.
However, they are in fact reconciled on a quarterly basis and listed on VAT return window.
I ran a test with all unreconciled transaction included. The VAT report shows a huge negative balance on box 5 - a big VAT refund from HMRC, but I am not sure if this is correct.
I am trying to understand the following:
3 JC 2201 - purchase tax control account BL is adding up into box 1
3 JD 2200 - sales tax control accounts BL is adding up into box 4
These journals match the exact amount for the 3 quarters Vat returns but I don't know why they are still showing as unreconciled VAT transactions.
Secondly they are the wrong way around on the Vat report details.
Your advice and suggestions would be very much appreciated.
Kind regards
Hana
-- Edited by Hana NB on Saturday 13th of May 2023 06:14:06 PM
Sounds like some incompetent has not finished the vat process in prior quarters. Suggest you refer on to the Accountant or your senior in the business.
Thanks for your feedback. Yes, that was the case - the T0 tax code was used for those incorrect Tax control account's journal entries. As a result they appeared as unreconciled VAT transactions.
The problem has now been sorted.
Thanks for your feedback. Yes, that was the case - the T0 tax code was used for those incorrect Tax control account's journal entries. As a result they appeared as unreconciled VAT transactions. The problem has now been sorted.
Such total incompetance. Makes you wonder what else is wrong that doesntjump out of the reporting pages!
I feel youre dealing with some unusual discrepancies in your clients VAT. Here I can suggest some possible solutions.
Unreconciled Transactions:
If the VAT returns for the first three quarters of 2020 are showing as unreconciled transactions in the tax control account journals, there may be a few reasons for this. Here are some possibilities to consider:
Timing: Make sure that the VAT returns for those quarters have been filed and processed by HMRC before attempting to reconcile them. Sometimes, there can be a delay between submission and reconciliation.
Reconciliation Process: Review the reconciliation process for the tax control account journals. Ensure that all necessary steps, such as matching sales and purchase records, have been followed correctly. Double-check any manual entries to ensure accuracy.
Software Issues: If youre using accounting software, there may be a technical glitch or misconfiguration causing the transaction to appear as unreconciled. Check for any updates or contact the software provider for assistance.
VAT Return Details:
You mentioned that the journals for purchase tax control account (JC 2201) and sales tax control account (JD 2200) are adding up into the wrong boxes on the VAT report. This could be due to a misconfiguration or error in your accounting systems mapping or setup.
Consider the following steps:
Mapping Settings: Review the mapping settings in your accounting software for VAT reporting. Ensure that the appropriate tax control accounts are linked to the correct boxes on the VAT return.
Customization: If your accounting software allows customization of VAT return templates or mapping, verify that the configuration matches the requirements of the tax authority. Its possible that a mapping is causing the figures to be reported in the wrong boxes.
Report generation: Check the parameters and filters used when generating the VAT report. Ensure that the correct accounts, periods, and other relevant settings are selected to generate an accurate report. For more info visit globalintegra.co.uk/
I feel youre dealing with some unusual discrepancies in your clients VAT. Here I can suggest some possible solutions.
Unreconciled Transactions:
If the VAT returns for the first three quarters of 2020 are showing as unreconciled transactions in the tax control account journals, there may be a few reasons for this. Here are some possibilities to consider:
Timing: Make sure that the VAT returns for those quarters have been filed and processed by HMRC before attempting to reconcile them. Sometimes, there can be a delay between submission and reconciliation.
Reconciliation Process: Review the reconciliation process for the tax control account journals. Ensure that all necessary steps, such as matching sales and purchase records, have been followed correctly. Double-check any manual entries to ensure accuracy.
Software Issues: If youre using accounting software, there may be a technical glitch or misconfiguration causing the transaction to appear as unreconciled. Check for any updates or contact the software provider for assistance.
VAT Return Details:
You mentioned that the journals for purchase tax control account (JC 2201) and sales tax control account (JD 2200) are adding up into the wrong boxes on the VAT report. This could be due to a misconfiguration or error in your accounting systems mapping or setup.
Consider the following steps:
Mapping Settings: Review the mapping settings in your accounting software for VAT reporting. Ensure that the appropriate tax control accounts are linked to the correct boxes on the VAT return.
Customization: If your accounting software allows customization of VAT return templates or mapping, verify that the configuration matches the requirements of the tax authority. Its possible that a mapping is causing the figures to be reported in the wrong boxes.
Report generation: Check the parameters and filters used when generating the VAT report. Ensure that the correct accounts, periods, and other relevant settings are selected to generate an accurate report. For more info visit spam
Your post adds nothing. Talking about Sage being misconfigured. Crazy. It is clearly someone who hasnt got a clue how to use the software. User error. Not software error. You dont get any 'more info' by clicking on your link. You are just wasting time with your no added value posts.
