Purchase invoice incorrectly posting into VAT return?

Support
1

Can you please look at this purchase please. It seems to be posting an old entry now into this quarter vat return but the item on the invoice its posting has not been marked for vat??? Most worrying…

802×61 2.84 KB
PURCHASES BOX7 BOX4
RECEIPTNUMBER DATE SUPPLIERNAME NETAMOUNT VATTOTAL
QF00053 21/04/2016 Essex & Suffolk Electrical Ltd 191.39 35.41

1680×1050 73.8 KB

2

Hi @Sarah_Brice,

Are you on cash accounting? Has there been a payment made against this invoice during the VAT period you’re filing for? Or, is it an older invoice that’s just been entered into the system?

If an older invoice is entered into the system that hasn’t been included in a VAT return previously, it’s automatically brought forward into the next VAT return.

3

So I’ve just noticed the entry was posted with the wrong date (2017 instead April 2016) but the amount posted doesn’t have any vat on it so why is it posting vat???

4

Could you please look at my other query sent about 2nd hand vat scheme, which was answered previously (thankyou) but I’m still having problems (is the manual adjustments code only possible with credits and not debits (i.e. a vat loss)??
thanks

5

Thanks I’ve just seen your response on the other matter, still got this one open…

So I’ve just noticed the entry was posted with the wrong date (2017 instead April 2016) but the amount posted doesn’t have any vat on it so why is it posting vat???..[quote=“Sarah_Brice, post:3, topic:17252, full:true”]
So I’ve just noticed the entry was posted with the wrong date (2017 instead April 2016) but the amount posted doesn’t have any vat on it so why is it posting vat???
[/quote]

6

The invoice has VAT on it, so it’s likely that the VAT element is being picked up. The way this is handled is the VAT is appropriate based on the payment value. For example, if I have an invoice:

£150.00, 20% VAT (£30.00) = £180.00
£50.00, 0% VAT (£0.00) = £50.00.
Total = £230.00 inc. VAT

If I then make a payment, similar to you, of £180.00, it would work this out so that the amount of VAT is proportionate to the total.

£180.00 is approx. 78% of the invoice total, so 78% of the VAT is claimed.

Providing the transaction and the previous accounting year isn’t locked, you may be able to amend this by clicking on the date on the bank statement view.

7

So has it only proportionately posted the amount that did have vat and how will it correct it if I amend the posting value date on this non vat item?? :frowning:

8

Yes, the VAT amount of the 20% line in your screenshot would have been split.

To use your figures:

  • If a payment is made of the full amount for the first line (£3,360.00), made up of £2,835.41 net and £524.59 VAT
  • This is based on £3,360.00 being approx. 93.67…% of the invoice total (the percentage is to several decimal places).
  • You have £560.00 worth of VAT, so 93.67…% of the £560 = £524.59
  • This leaves £35.41 left on the invoice to be paid, which is then accounted for when the balance is paid off

As I mentioned above, any older invoices are automatically brought forward into the next VAT return. Because that amount is yet to be claimed for, providing the date is before the end date of your next return, it will be accounted for there.

Hope that makes sense?

9

Thank you, that worked and the adjustment has brought forward.
Thanks for your prompt response.

1 Like
10

This topic was automatically closed after 7 days. New replies are no longer allowed.