Hi
How is reclaimed VAT entered? I have made a new account 'VAT Reclaimed' and added a transaction with the money going from this account to my cheque account. Would this be the correct way?
Thanks for your help
Hi David,
Solar Accounts is designed to use the 'VAT Liability' account in the way you are using your VAT Reclaimed account. For example, if you record a purchase with 15% VAT, the VAT Liability will decrease. A negative VAT Liability means the tax man owes you money.
When you receive a refund you should record a transaction which moves money out of the VAT Liability account to your Cheque Account. The easiest way to do this is using the 'Prepare VAT Return' button on the home page.
