The option to run a VAT return is available from the main Menu, Current Year, Nominal, and VAT Table. Another option is by clicking the VAT short cut. If the VAT return date is within your previous financial year please run the return from Previous Year, Nominal, and VAT Table.
On selecting the above option, the system will take you straight into the VAT Table. This table will display all the VAT entries since your last VAT return. You can view the audit of all previous Vat returns by select the appropriate TAB, Vat Return. To run a VAT return from the previous year, please refer later within this document. To re-print previous VAT returns refer to the respective FAQ.
Before processing your VAT return, you can issue the required reports to fill in your VAT return. Please note that the system does not print the form that you need to submit to the VAT Department but you need to use the forms received.
To process a VAT return (also referred to as archive or flagging) click on the button Vat Return or CTRL R. On selecting this option, the system will display the following dialog box.
Annual VAT Account
: This is the account where the system will maintain the transactions of each of your VAT returns. Some users refer to this account with different descriptions like VAT liability, etc. The most import thing is that this is a Balance Sheet Account and used only for VAT returns. This account is not the VAT control Account.
Date of VAT Return
: It is import, that here you enter the date of your VAT return and not the date when you are submitting the return. The system will pick up all the entries with a transactions date which is less or equal to this date. All other transactions with a date which is greater than the user entered date will remain in the current VAT table. For your information, the system will display the date you processed the last VAT return.
: This is not a mandatory field and you could leave it blank. In the above example, we entered 12/08, the month and year of the VAT return.
When ready from the above click OK.
The system will start processing the VAT return. During this process, the system will perform the following functions:
1. Allocate next VAT return number.
2. Archive all entries up to the specified VAT return date. All the returns are available for re print from the archive.
3. Clear all entries from the current VAT table.
4. Automatically post the total amount of Output and the total amount of Input to the Annual VAT account as entered above and post the control entry into the VAT control account.
5. Change the last VAT return date to the date entered above to prepare for the next return.
When complete we strongly recommend to change the posting dates (from Current Year, Utilities, Posting Dates) to stop users from posting into a closed VAT return. This is optional and completely under the control of the user. The system will not stop users from posting into a closed VAT return unless the posting dates are set-up accordingly.
: It is important that you run the VAT return immediately when you fill in the VAT Department Form and submit the return. In this way, you will remove the risk that users may back post into this VAT period and therefore change the period amounts.