SageForum for UK versions of Sage 50- Help and support.

Hi, I have started using Sage 2010 about a year ago for VAT returns and have found it a very steep learning curve! I think I'm getting most things right now but am still going through errors with things such as incorrect nominal codes etc that I made early on.

I've been told that for a VAT or bank reconciled error, it is best to create a counter entry with the same date and reference and then to enter the correct entry again. For instance, if I made an error on a Bank Payment, to enter a Bank Receipt with the same details to counter it and then to enter the Bank Payment with the correct details.

If there is a VAT element involved in this new entry it is included in later VAT returns and is making the Total Sales figure incorrect. To explain further, I have made a mistake with the wrong VAT code or amount on a Bank Payment so enter the counter Bank Receipt with the same details as the original to effectively "cancel" it. Then I enter the correct Bank Payment and correct VAT code or amount.

I have 2 queries regarding later VAT returns:

* When I run a later VAT return and drill down through the Total Sales figures, I've found that this entry is included even though it doesn't have a 4000 nominal code and the VAT hasn't changed and already been paid.

* I understand why Sage has added the VAT if I owe more than I originally entered but the same happens if it is just the nominal code or the VAT code that I've changed and the correct amount of VAT has already been paid.

* Should I make an adjustment to the Total Sales figure to match the amounts with nominal code 4000 and not include anything else? Would this cause a problem with the online VAT filing system? Would it arouse suspicion with HMRC if the VAT payable was a little higher than the amount due on the Total Sales?

Your help would be very much appreciated.

In the case of the bank transactions the turnover figures will cancel each other out, your may be over stated and your purchase by the same amount, this is not an issue in practice.

The nominal code has nothing to do with whether a transaction appears on the VAT return.
The VAT code is what determines if the transaction is on the return or not.
Sales and purchases are determined by the transaction type.

Find the transaction number, go to the financails and look for the transaction look at the VAT flag / VAt rec date and you will see it has not been accounted for on a previous return.
You may also find a contra transaction next to it, if you have done something resulting in a reversal.

No you should not adjust, you should resolve the problem.

Without specific details it is hard to comment, the amount of support may be needing could be more than you can reasonably expect to get for free on a forum.

Try and ask one question at a time and be very clear and specific.

We have a VAT registerd partnership and my husband also has a non VAT registered business.

I found that I made an error on an entry in the partnership accounts in December 2009. I entered an invoice that should have been for my partner's non VAT registered business and reclaimed the VAT on it which was £92.66. The entry (trans 92) was included in the VAT return dated 31st January 2010 and VAT reconciled. It had been paid in error out of the partnership bank account.

When I noticed the error, I corrected it in the Maintenance, Corrections window, changing the nominal code to Drawings (3201) and changed the VAT code to T9. This created trans 742 which was a counter BR with the same VAT and nominal code as the original BP.

The new BP created by Sage when I performed the correction has a T9 VAT code and nominal code of 3201.

When I calculate the VAT return dated 31st October this year and agree when asked to include the transactions from an earlier period, Box 6, Total Value of Sales excluding VAT is higher than we believe our sales figures should be. When I drill down in Box 6, Total Value of Sales, excluding VAT I see that trans 742 is listed (under the old T3 code which I used for 15% VAT that was applicable at the time of the transaction).

I understand why the VAT payable would be £92.66 higher as I have claimed this in error and must repay it but I don't understand why the Sales figure is higher than our actual sales for the quarter.

I have also noticed that a refund where VAT was paid back is included in the Sales Total. It has a nominal code of 6900 miscellaneous expenses. I expected only those nominal codes which we use for Sales (4000 and 4001) to be listed when drilling down to the VAT Breakdown from Box 6.

I'm hoping that this query is simple enough for someone to explain why Sage includes these transactions when it calculates the Total Sales figure.

Thanks.

The sales could be higher, because the VAT inclusive amount was the same and the VAT was lower?