The amounts to be journalled out were in "Money to be banked" as receipts. These had also been entered as sales and receipts into the bank account. The journal used was of the form:
Money to be banked - a credit
Sales income - a debit
VAT liability - a debit
Gain on flat rate - a debit.
My question is, when doing the next VAT return will the "Prepare VAT return" tool deal with the VAT liability entry satisfactorily especially if its in a past period?
Hi Jonathan,
No, Solar Accounts will only pick up transactions within the VAT period you specify when it calculates the VAT return figures. When preparing your next VAT return you will need to manually adjust the figures as you copy them from Solar Account to the return form.
(Even if adjustment was in the current VAT period it would be treated as 'Out of Scope' by Solar Accounts because it is a General Transaction).
By the way, a simple way to a reversing transaction in this case would be to right-click on the Money Paid Out transaction, then select copy, then add a minus sign to the amount, then click 'Save'.
Regards,
