How do I enter under claimed VAT from previous year on the system so that it can be included on my next VAT return.

Hi Rita,

I recommend you click menu Setup > Financial Year > Revert to previous financial year, then correct the transaction(s), then click menu Setup > Financial Year > Start a new financial year.

This procedure will correct your VAT Liability balance but unfortunately Solar Accounts is not clever enough to look at old VAT periods when it calculates the figures for your current VAT return. You will need to simply modify the figures as you copy them from Solar Accounts to your VAT return form.

Regards

Mark,
Your suggestion can create a problem in comparing previous and subsequent accounts.
If the previous year's accounts have been completed & signed off, any report including these accounts after the adjustment will throw up different figures to the original accounts. For example, Multiple period reports - this year v. last year.

In this case what I simply do is to include the invoice in the current VAT period by dating it on the first day of the period with a note indicating the original invoice date.

This will mean that earlier VAT returns and accounts will not have been interfered with & is perfectly legal if it complies with the conditions shown below.

This is an extract from an HMRC website:
https://www.gov.uk/vat-corrections/adjustments
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1. Adjustments
You can adjust your current VAT account to correct errors on past returns if they