Difference between PL and vat report

Accounting
1

Hi when I draw a P/ L statement for the quarter 01/08/2021-31/10/2021 total sales are 250.000 Pounds
when I create a VAT report for the same period total sales excl VAT are 195.000 plus 2000 Vat on sales (not all sales are subject to vat ) I can understand the difference, any advice is much appreciated

2

Hi @sbadvisors

Are you on cash or accrual for VAT?

3

Hi
I’m registered on accrual

4

Hi again
I checked it a bit deeper the P/L generated on all sales the vat report takes into account only the invoiced sales I think that’s the reason

5

Hi @sbadvisors

That may well be it. You can download the backing data for the VAT return so you can see what has been included and compare that to the P&L

6

thanks have a nice evening

1 Like
7

Indeed - the whole VAT system in QuickFile is based on invoices and purchases, not nominal codes. A VAT return will include all invoices and purchases for the VAT period regardless of what nominal code or codes each one is assigned to (so for example it’ll include purchases of assets, where the purchase nominal is a balance sheet code rather than a P&L one), and conversely the P&L report will include all activity on the P&L codes whether that’s from invoices/purchases, journals, or direct bank transaction tags (“something not on the list”).

1 Like
8

Hi Ian
thank you for taking the time to answer, as I mentioned the problem is on sales and how the vat return created.
When I record sales on code 4000 these sales do not reported on vat return box 6.
For example I made a test and I Db Bank by 20.000 and Cr sales code 4000 by 20.000 the PL climbed to general sales at 270.000 but the vat return box 6 all sales, is the same at 195.000

9

Yes, the VAT return system in QuickFile only considers invoices for boxes 1/2/3/6 and purchases for boxes 4/7. Anything you tag directly to 4xxx codes using journals or direct bank tagging without producing an invoice will not be considered for the VAT return.

This is by design. There’s no notion of a “VAT code” assigned directly to bank transactions or nominal entries like you might have been used to in other accounting packages. In QuickFile VAT is only recorded at the invoice/purchase level.

1 Like
10

Thank you Ian have a nice evening

11

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