VAT Reconciliation

Overview

The VAT Reconciliation module allows you to link transactions to your VAT Reconciliations including transactions that are out of period. The list view can be filtered by Date (the default date filter is Fin Year), Entity and Status.

A red warning bar will warn you when your Reconciliation dates overlap with the dates on another Reconciliation.

Each VAT Reconciliation works independently and doesn't directly update your Accounting, it simply calculates the VAT that is due.

Open Transaction in Ledger from the VAT recon.

Transactions that meet the following criteria can be added to the VAT Recon.

• Transaction Type is set to update VAT

• Transaction Status is in an Accounting Status

• Transaction Type is not excluded in the General Setting below.

The following options are available to filter the Outstanding Transactions: 

• Show: Zero-VAT - Displays zero VAT transactions except for 'No VAT' Transactions.

• Show: Out-of-period - Displays transactions that are dated before the Start Date.  

Settings

General Settings > Account - VAT Control - Select the VAT Control account

General Settings > Accounting > VAT Reporting Frequency (Months) - Default = 2

General Settings > Accounting > Exclude Transaction ID''s from VAT Reconciliation (eg. '<> 2', 'not in (1,2,3)') - Use this setting to exclude VAT Payments from the VAT Recon

User Setting > Accounting > VAT Reconciliation - Access Allowed (None, User, Administrator) - Administrator rights are required to change a Complete reconciliation back to Pending.

How to create a VAT Reconciliation

Click the New button.

Select the Entity (Company) - applicable when running multiple Entities only.

If this is your first VAT Recon, you need to enter a Start Date, otherwise, the Start Date will automatically be set to the next day following the End Date of your last VAT Recon.

The End Date will be set according to your VAT Reporting Frequency (Months) setting. You are able to override the start and end dates, for instance, to create two one-month VAT Reconciliations if your VAT Period is split over your financial year-end.

Multi-select the Outstanding transactions and click the Add button to include them in the selected VAT Reconciliation. 

Multi-select the Included transaction items and click the Remove button to return them to the Outstanding list. If an Item is removed, the entire Transaction is removed, however.

Set the Status to Complete to close the Reconciliation and make it read-only. The Status can only be changed back to Pending if you have Administrator rights

When Complete, Summaries (Transaction Types and VAT Types) are displayed on the Left and the Transactions that are included in the Reconciliation are displayed on the right.

Output

The following data pipelines are available:

• VAT_Filter - exposes the Date, Branch and Status filter

• VAT_Header - the VAT Recon header fields

• VAT_Transactions - The Transactions included in the VAT Recon

How to create historical VAT Reconciliations

If you are upgrading from an earlier version and you already have many accounting transactions in your database, you need to create historical VAT Reconciliations for all the VAT Periods included in your database. This can be done by executing the following script (Follow the instructions at the top of the script):  https://drive.google.com/open?id=1EdquMm10mwrzsg9Nzd5rsqsSz1SMu87C&authuser=apinya.n%40quickeasysoftware.com&usp=drive_fs