Question asked by Maria Ingold 10 years ago
Hi, I'm confused by what these each mean and when I use which in my dropdown. These don't seem to be standard terms as I can't find them in Google.
Kindest regards, Maria
Just posting an update as I've now gotten this reconciled on ClearBooks with lots of help.
Money > Bank Accounts - Explain an imported bank statment Do NOT use VAT Payable to explain a BANK STATEMENT. Use VAT Control. The reason is that VAT Payable adds it to a separate section and not the VAT Control report which updates the VAT due on the front page. By the way the VAT module on the front page can take over an hour to update.
Reports > Tax > VAT Return
If the total values are off can create VAT Returns to see if the data entered in the system matches the historic VAT returns submitted.
N.B. Any Invoices line items that are just Refunded Expenses by the client should be set to EXCLUDE FROM VAT RETURN. This has been confirmed by ClearBooks.
Also, if you have already reconciled / explained a historical bank statment using VAT Control, then do NOT mark a VAT Return as Complete. The reason is that that creates another Bill allocated to VAT Payable, so then 2 Bills exist under VAT Control for the same thing. Do one OR the other.
I hope that helps someone else.
Kidnest regards, Maria
Best answerHI Maria
Presuming you're on VAT cash accounting....
You create an invoice + VAT....the VAT element goes into the VAT cash control account.
The invoice subsequently gets paid....the VAT moves from the VAT cash control to the VAT control.
You then run the VAT return...the amount owed moves from the VAT control to VAT payable.
You then pay the VAT from your bank account, analysing it to the VAT payable account.
I don't know why VAT control or VAT cash control are showing on any of your dropdowns, you don't want them to. Go to Settings > Codes > All - find both accounts, untick the show in sales/purchases options, then hit update down the bottom.
Wow. Thank you. Clearbooks support was so wrong.
I'm entering historic records. So my VAT history is: VAT Scheme VAT Accounting Date from Date to Flat Rate Not VAT registered N/A 11/06/2012 10/07/2012 N/A VAT registered (Standard) Invoice accounting 11/07/2012 31/08/2012 N/A Flat rate scheme Invoice accounting 01/09/2012 26/03/2013 13.5% Flat rate scheme Cash accounting 27/03/2013 31/08/2013 13.5% Flat rate scheme Cash accounting 01/09/2013 14.5%
I wasn't always on Cash-Based Accounting. How does that change things?
God I hate the formatting of posts on here, give me a minute to figure this one out.... ;-)
I presume it should look like this:
Making the switch from invoice to cash accounting in Clear Books is fairly simple, the system will handle everything for you. As you were on invoice accounting first, all VAT hits the VAT return at the point of invoice. Once you make the switch, it'll only hit the return once payment actually changes hands. Nothing much more to it really, just leave the software to do the work (it's different when you're going from cash to invoice).
As a side note, as far as I know you can only switch from invoice to cash at the start of a VAT period which would usually be the beginning of a particular month. You seem to have started from 27/03/13 though?
Yes, that's what it should look like. Thank you. Good point. I was trying to rebuild my history from emails sith my former accountants back then. That's when I was notified that it changed. I'll try to figure that out. Thanks again!
Pleasure, hope it goes well. Once you've recreated the books, run the VAT returns again to see if they match what was actually submitted/paid. If for any reason they don't just give me a nudge on here and i'll talk you through how to make an adjustment in your next return.
PS I'm surprised support didn't give you the same response but do remember they're not accountants.
Just posting an update as I've now gotten this reconciled on ClearBooks with lots of help.
Money > Bank Accounts - Explain an imported bank statment Do NOT use VAT Payable to explain a BANK STATEMENT. Use VAT Control. The reason is that VAT Payable adds it to a separate section and not the VAT Control report which updates the VAT due on the front page. By the way the VAT module on the front page can take over an hour to update.
Reports > Tax > VAT Return
If the total values are off can create VAT Returns to see if the data entered in the system matches the historic VAT returns submitted.
N.B. Any Invoices line items that are just Refunded Expenses by the client should be set to EXCLUDE FROM VAT RETURN. This has been confirmed by ClearBooks.
Also, if you have already reconciled / explained a historical bank statment using VAT Control, then do NOT mark a VAT Return as Complete. The reason is that that creates another Bill allocated to VAT Payable, so then 2 Bills exist under VAT Control for the same thing. Do one OR the other.
I hope that helps someone else.
Kidnest regards, Maria
Best answerThanks for taking the time to do this, Maria. Much appreciated!
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