Is there a way of clearing off a supplier balance for "HMRC VAT" which should not be there?

Question asked by Chris Macleod 11 years ago

Because of historic problems with the VAT module, my client (I am the accountant) has a balance showing under "HMRC VAT" of 6,369.75. This in fact should be zero. I would like the "VAT payable" part of the dashboard to show zero. Then all future returns will be a case of the client:

  1. Running the report with historic items all included.
  2. Sense ckecking this.
  3. Posting it.

My first thought was to post a journal, one side going to "HMRC VAT" supplier and the other to VAT control. But this failed to alter the "HMRC supplier" balance. Is there a way of doing this please? Or should I just tell the client the 6,369.75 will always show up on the dashboard and should be ignored?

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10 Replies

Hi Chris

Assuming the balance was generated by an internal Bill, then probably the easiest way is to post a purchase credit note from HMRC, crediting the control account (make sure t is ticked as being available to purchases on the Code list in Settings). Then go to the bill and use the credit note at the bottom to pay it off.

Fingers crossed.

Best answer
11 years ago

Hi Chris & Paul,

I can confirm a purchase credit note should cancel off the outstanding HMRC VAT balance that is showing up on the dashboard, assuming it's generated by an internal bill as clarified by Paul.

Once the credit note has been created it will take some time to update on the dashboard, so if you can view the full statement for the HMRC entity in the suppliers page or head to reports > other > transaction and select vat payable from the account type list and click find, then this will show you the real time balance in your Clear Books account for VAT payable.

Please go ahead and apply the solution provided by Paul and then let us know if you need any further assistance.

All the best,

Shaz

11 years ago

Sorry folks, but the system will not permit the credit note to be allocated to the purchase orders

" If an unused credit note exists for the particular supplier then an option to allocate a portion, or all of it, against the selected invoice will be enabled. "

It is not enabled I am afraid. the frustrating thing here is that in either SAP or VT - not Sage admittedly! - I would simply click the 4 line items which are all adding up to zero, then click "Cleared items" and those items are all matched up and don't show on open items reports.

11 years ago

Sorry Chris I've never had to do this with an HMRC bill (you said Order?) so no idea why it doesn't work. If you have generated a credit note on the HMRC supplier I don't see why it's not available when looking at the bill - Shaz?

If this wont work, I'd just set up a dummy bank account, pay off HMRC and then record money in, for the same amount and put it to VAT control.

11 years ago

Hi Chris,

Does the HMRC VAT balance relate to part paid bills PUR004043, PUR003733 and PUR001395?

If so, I've followed the instructions as mentioned above by Paul in our test account and it allowed me to allocate the credit note to these part paid bills.

It cleared the £6,369.75 from the VAT widget on the dashboard, please view screenshot of this here: http://prntscr.com/5eyaky.

If you would like, I could allocate the credit notes on your behalf.

Kind Regards,

Shaz

11 years ago

To take a slightly different slant on this....

Is it just a dashboard issue or is the £6369.75 actually showing within aged creditors?

I've got a client who's got 3 historic VAT bills from 3-4 yrs ago that are listed on the dashboard even though they've long since been voided off - but they don't show within the aged report so it's more of a tech issue than accounts related.

11 years ago

Seems Shaz has beat me to it so you can of course completely ignore my trail of thought!!

11 years ago

Shaz,

I am happy for you to go ahead, with thanks. Please date the transaction 01 Nov 14 as I've closed off the Oct year-end and we're about to submit to HMRC and Companies House.

Thanks to both of you.

11 years ago

Hi Chris,

I've applied the credit note to the bills. It has also updated it on the vat widget as well as the VAT control account in reports > other > transactions.

Please can you check this and confirm all is working fine from your end?

Regards,

Shaz

11 years ago

That's great, the Dashboard and VAT supplier are both now looking right. Thanks for such a quick response both of you.

11 years ago

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