VAT Reconciliation Tutorials

How to Create a New 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.

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

5. Select the Entity (if applicable).

6. Select all the transactions in the  in the Outstanding (Transactions) section (Ctrl + A,) or select only those you want to include (using Ctrl + left click).

7. Click Add (button).

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

9. If complete (Done (button) clicked), Summaries are displayed as follows:

   • Header:

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

   • Transaction Types (top left): 

     • 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. 

   • VAT Types (bottom left)

     • Displays a summary of the VAT Types. The totals will agree to the Transaction-Type totals.

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).

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 a record in the Included (Transaction Items) grid view > Click Remove (button).

   • Add records by selecting a record in the Outstanding (Transactions) grid view > Click Add (button).

7. Click Done (button). 

How to Include Out-of-Period Transactions

1. Edit or Create a VAT Reconciliation.

2. Check the checkbox next to Out-of-period.

3. All the transactions that have not yet been included on a VAT Reconciliation are displayed.

4. Click the transactions to add.

5. Click Add (button).

How to Include Zero VAT Transactions

ℹ️ Transactions without VAT can be displayed for you to verify that VAT is not applicable.

1. Edit or Create a VAT Reconciliation.

2. Check the checkbox next to Zero-VAT.

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

Related Topics

• Reference: VAT Reconciliation