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Post Info TOPIC: VAT adjustments
Seb


Veteran Member

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Posts: 39
Date:
VAT adjustments
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Hello, 

Imagine you've entered a invoice in Sage Instants, V19. You've entered an invoice totalling £6000, £5000 net £1000 vat. 

It turns out that it shouldn't have VAT attached for whatever reason.

What I've done, up to yet to rectify,

Dr the expense account £1000 with 0% rate of VAT (Bring the total to £6000) T9

CR Purchase Vat £1000 20% rate of VAT T1

All of the nominals look as they should.

When I run the VAT return in Sage I get,

Sales VAT 1000

Purchase VAT 1000

Payable to HMRC £0

Am I on the right lines?

 

Another was imagine someone is late to register for VAT, Dr Purchase Tax T1, Cr Purchases T9 and vice versa for sales.

 

Purely playing around with possible situations.

 

Thank you very much.

 

 



__________________
Seb
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
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Sales invoice or purchase invoice?

Whichever it is.....what does your debtor/creditor balance show?

One scenario at a time.



__________________

 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
abacus12345


Guru

Status: Offline
Posts: 1363
Date:
Permalink Closed

Whatever adjustments you do make make sure you've got your workings and reasonings in a spreadsheet. You'll thank yourself if there is a VAT inspection and come reconciliation time at quarter end, year end etc. Also if client ever switches bookkeeper/accountant that information is useful.

__________________

Johnny  - Owner of an overly-active keyboard. 

A man who can read, yet doesn't, is in no way wiser than a man who can't.

 
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