VAT Reconciliation Tutorials

How to Create a VAT Reconciliation

1. Navigate to the VAT Reconciliation.

2. Click View (button) to display a list of VAT Reconciliations. If the period you need to reconcile is not on the list, proceed with Step 3, otherwise edit the existing reconciliation by double-clicking it.

3. Click New (button).

4. Select the Period Dates if there are no previous VAT Reconciliations. If there are reconciliations, the dates are automatically selected based on the VAT Reporting Frequency setting.

   1. • Note: You can select different dates if necessary (e.g. if your VAT Period is split over your financial year-end). 

5. Select the Entity (if applicable).

6. Click Add (button).

   1. Check any of these two checkboxes (optional):

      • Zero-VAT: Displays transactions on which VAT was not

      • Out-of-period: Displays transactions that pre-date the current period and were not previously included in a VAT recon.

   2. Click View (button).

   3. Select all the transactions you want to add to the recon. Check the checkbox next to Status for all the transactions or check the individual checkboxes.

   4. Click Add (button).

   5. Click Close (button) to close the popup.

7. The transactions and summary information are displayed as follows:

   1. Header:

      • Displays the total Output, Input, and Balance Due.

   2. Transaction Types (on the right): 

      • Displays a list of the included transaction types and whether the VAT is included as inputs or outputs.

      • Only transactions that have a setting for Input or Output in their Accounting section are included. 

   3. VAT Types (on the right): 

      • Displays a summary of the VAT Types. 

      • The totals should agree with the Transaction-Type totals.

8. If the recon is final, click Done (button), else you can leave the report and return to it later. 

How to Verify a VAT Reconciliation

1. To ensure that all your transactions are included in your VAT Reconciliation, check that the ledger balance of the VAT Control account matches the amount due as per the VAT Reconciliation for the same date (e.g. The VAT due for the July and August VAT Reconciliation should match the balance of the VAT Control account on 31 August if all the previous payments and refunds were captured).

2. If the balances do not match, filter the VAT Control account by transaction type and verify that all the transaction types are included in the VAT Reconciliation. 

3. If a Transaction Type is not included, you can manually add those values to the VAT Summaries and check that the Transaction Type is correctly setup to prevent the problem from happening again.

   • Note: Changing Transaction Type settings when there are transactions can have unintended consequences. It is best to create a new Transaction Type instead.

How to Edit a VAT Reconciliation

1. Navigate to the VAT Reconciliation.

2. Click View (button) to display a list of VAT Reconciliations.

3. Double-click a VAT Reconciliation to open it.

4. Set the Status to Pending.

5. Click Save (button).

6. Add or remove Transactions.

   • Remove transactions by selecting the entries and clicking Remove (button).

   • Add records by clicking Add (button). Follow the instructions as per Step 6: How to Create a VAT Reconciliation.

7. Click Done (button). 

How to Output a Transaction List

1. Edit or Create a VAT Reconciliation.

2. Click Output (button) > Select Print, Preview, or Email.

   • Note: The default template generates a list of transactions listed in the Transactions section in .pdf format. 

• Note: To export the list in Excel format, click Menu (button) > Email Excel.

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 step can be done by executing this Script (follow the instructions at the top of the script).

Related Topics

• Reference: VAT Reconciliation