vat return

[cleo]

Hi,I m quite new in the accounts and I d need some help.
Where I work they never reconcilied the vat ,now I ve done it and it is quite a large amount what we need to pay.I ve red the once reconciled it can be reversed is it true?can it be done anything to reduce this large amount?Have i done a mistake,reconciling it?
Thank You for your help.
Cleo

[coolguysvenster]

Hey,

If you reconciled the VAT as long as you only reconcilled transactions that had been accounted for in VAT returns then you are ok. The idea behind reconcilling vat is that it is a measure in place to prevent you from inadvertantly accounting for the same transaction twice in any of your VAT returns.

E.g. if your VAT Quarter End is March 2009, you would run the VAT return from 01/01/2009 to 31/03/2009 which would then bring up all of the transactions posted between those dates that have been posted to your Vatable Tax codes. i.e. all except T9. It asks you when you enter the dates and calcualte if you want to include unreconcilled values from previous periods for example invoices received in an old period after you have produced the VAT return, it then allows you to account for those transactions whilst ignoring every other transaction that has already been accounted for.

As far as i am aware there is no way to unreconcile a VAT Reconciled transaction once you have done so, if you to go File Maintenance it shows you the VAT Reconcilled date but one reconciled this is greyed out and can not be altered.

Hope this helps.

Steve

[brucedenney]

If it has never been reconciled, then run a report up to the BEGGINING of the current period you are about to do a return for. The total of this vat return should match the total of all the previous vat returns. I suspect that in real life it will not, as back dated items may have been entered and as a result you may have to make an "adjustment" if it is a small difference, you might let it slip or just pay it over to the VAT man. If it is large then you really need to understand what has gone wrong.