The Nominal Ledger VAT [Value Added Tax] Options menu contains the actual creation of the VAT codes, rates and groups together with the reports necessary for VAT purposes and reconciliation. Within this menu is also the option to advance the VAT period. VAT periods are user-defined to comply to your business profile. All transactions which contain VAT statistics and/or VAT values are held within the summary and log reports.
Note: Any VAT elements, which are generated via journals, do not form part of any VAT analysis. Also excluded from VAT analysis are Internal postings where the VAT code is O for outside scope of VAT.
VAT Nominal account codes are distinguished from all others by having the field 'Control Account' on the expense code set to V for VAT.
Note: The Sales or Purchase Ledger invoices are always entered into the VAT log under the Nominal Ledger posting date and not the tax point date.
Menu Options
VAT groups: VAT groups are used in conjunction with multi-currency options. They allow VAT groups to correspond to a particular country or currency and will allow VAT control accounts in both foreign and base currency. As a result the same VAT code can be used in multiple groups [e.g. VAT code S could be used for VAT Group UKL and YEN but could have a different percentage rate for UKL than it does for YEN] Upon entry into the menu option, the user can choose to display the grid of existing VAT groups,[or display in column format], create or delete a group or even run an ad-hoc report on the available groups.
The group code, description and currency code are user-definable, but the Sales and Purchase Ledger Vat adjustment account must be entered using a valid NL account, and the Settlement Discount field must be G or T [meaning that settlement discount is calculated on the basis of the goods or the total document value from the invoice source.]
VAT codes The VAT code file contains the codes to be mated to the VAT rates and groups i.e. it does not contain the rates as well. It simply contains the code, a short and long description a VAT type [Internal, Mixed or User] and a check box to exclude the code from any VAT statistics [for reporting purposes].This screen allows creation, deletion and amendment of the VAT codes.
VAT rates The VAT rate file allows the creation, deletion and amendment of the VAT percentage rates and settings that are used in conjunction with the VAT groups and codes. e.g. the user cannot create or amend a VAT rate until a group and a code exists.
The VAT rate [percentage] must be entered , and the currency code that will be used for this rate, an indication of whether zero VAT [lines on invoices] will be reported in the Nominal Ledger, and whether the rate is to be used for Sales Ledger, Purchase Ledger, or both Sales and Purchase Ledgers.
Currency revaluation: This option will revalue multi-currency VAT accounts. All VAT accounts that have a revalue 'Y' flag set on the Nominal Ledger can be revalued. There is the facility to produce a summary revaluation if required or a detailed analysis of differences.
Current period summary report: This report produces an analysis of all the VAT codes together with the associated input and output statistics and actual VAT values for the current period. It is, in effect, the necessary detail required for your VAT return.
Current period log report: This report produces a detailed analysis by daybook number of all the VAT codes, statistics and actual VAT values for the daybooks within the current period. The report is sorted by VAT code.
Find daybook range for VAT turnover: This report assists reconciliation of VAT statistics, where the turnover has been deferred in the balance sheet prior to releasing it into the P & L. It assists in the selection of daybooks for this task.
VAT to turnover reconciliation: This report scans the Nominal Ledger daybook file and produces a list of VAT output and turnover statistics linked to specific VAT codes for the date and daybook number ranges prompted at run time (the starting and ending daybook numbers should have been determined from the previous report
Reconcile VAT log to daybooks: This report scans the Nominal Ledger VAT log file and the Nominal Ledger daybook log file, and produces a list of VAT output statistics linked to specific VAT codes for the date ranges prompted at run time (the starting and ending dates should have been determined from the previous two reports).
VAT Reconciliation: This option allows the user to view each VAT code's transaction [both for goods and VAT values, for output and input VAT transactions] at both a summary and detailed [via a drill facility]level , for any period that is held in the transaction summary file. Summaries may also be printed.
Verify VAT totals: This option is usually run as a standard part of the Timed Operations,[but can be run live providing all accounts users are logged out of Autoline] and checks that the VAT code header file statistics agree with the detailed VAT log file. Any discrepancies are reported, showing for each code the expected values as per the VAT code header file, and the actual values read from the VAT log file, for both inputs and outputs.
Rebuild VAT totals: In the event of an error discovered in the previous option, Verify VAT totals, and if after thorough investigation the VAT log file values are deemed to be correct, it is possible using this option to rebuild the header record statistics using the values from the log file with this option.
Advance VAT period: If the Period End is also a VAT Period End, and the Sales and Purchase Ledgers have been closed, then the option Advance VAT period must be run. This option advances the VAT into the next period. and also clears the log and summary files for the current period.To run a VAT period end, Autoline requires all accounts users to be logged off.
