Wages Journal Credits and Debits appear on VAT Return

[zonkolooney]

Hi there.
I wonder if you could clarify something for me.
I am running Sage Line 50 Version 15.01.20.0191 on Windows 7.

I have recently been posting my Payroll on Quickpay to the Journals in Sage Line 50. I think I have everything right and it all balances
One thing that confuses me though.

When I run my Bi-Monthly VAT return the Journal Debits and Credits are appearing as part of the Total Value of Sales and Purchase in Boxes 6 and 7 respectively.
Do I need to "pay" the Nett Wages, Pensions etc or will that make any difference to what is displayed?

Is this normal behaviour?
If not, can I alter some setting to avoid them appearing here?
I'm fairly sure it's not the end of the world but it might be less confusing to my auditors if they are NOT present in the VAT returns.

Thanks in Advance
Peter

[zonkolooney]

Found the answer..... I think ? !? !

I unticked the "Include in VAT Return" for Tax Code T9 - now all I have showing is pure Sales and Purchases.


......... at least I THINK so....lol.
As long as there are no other implications to doing this ?

Thanks
Peter

[brucedenney]

I would also check that the "non-vatable tax code" is set to t9

Settings>Company Preferences>VAT

[zonkolooney]

Thanks for your input Bruce.
Yes I've done that too - T9 is set as the Non-Vatable tax code.

Do you reckon that's the complete solution?

Thanks
Peter

[brucedenney]

I would be hopeful that there were no other strange configuration issues, however, if someone has "fiddled" with one thing without realising the consequences then it is possible that they have introduced other issues.

[zonkolooney]

Thanks Bruce.
No - only me doing the fiddling here !!.........lol

I have been running Sage Line 50 for MANY MANY years but only ever as a means of controlling Debtors and Creditors from a trading point of view including stock control.
Its only in recent times that I have decided to do away with the other manual book-keeping and want to consolidate it all where possible onto what is undeniably a very powerful package. I WILL take my time as I integrate each piece and hopefully it will allow me to tame it eventually.
I have been running 2 separate sytems for a few months now and all appears well - even to the extent of getting the VAT to agree EXACTLY for 2 periods on the trot.
The old system has just too many problems to try and incorporate all that is necessary with the Journals etc. so I started again afresh with opening balances from 1st Nov and gradually introducing more and more.

Appreciate your wisdom - as always
Peter