Hello

When I record an expense as Accounts Payable, it does not show up in either my Bank Reconciliation nor in my VAT Return as a
VAT reclaimed on purchases or in Column 7. What am I doing wrong?

Also, how do I delete everything I've entered so far and start afresh?

Thank you

Hello E Pinn,

If your supplier allows you to delay payment you should enter this as a purchase invoice - this will allow you track the outstanding balance for each supplier. The purchase invoice will not appear in bank reconciliation because it doesn't affect the bank account. Only when you record the payment of a purchase invoice will an entry be shown in the bank reconciliation window.

By default, the same is true for VAT calculations - an invoice will not affect your VAT return until you make a payment. To change this behaviour, click menu Tools > Setup > Business Information > VAT is Caluclated When Invoices are Issued.

To delete everything and start from scratch, just create a new file - click menu File > New > Business File.

Thanks for your reply. However, the expenses are still not showing up in the VAT return.

What I did was :
Record an Expense
Paid to (Name of Company)
Paid From Cheque account
Journal memo : Money Paid Out
VAT Treatment - Purchase of Goods from a UK Supplier
Account - Accounts Payable
VAT 17.5%
Amount
OK

This transaction is showing up in the Bank Reconciliation but not in
4 or 7 of the VAT Return

Where am I going wrong

Hello E Pinn,

Perhaps this is the problem: By default, the VAT period is for the 3 months ending last month. That is, July - September. You may need to change the period to end in October after you click 'Prepare VAT Return'

Let me know if that helps.

Thanks for answering so patiently.

I have just changed the VAT Return to October 2008 and entered an Account Payable and it still doesn't show up in either 4 or 7 of the Prepare a VAT Return.

I have also opened a new account and gone to Purchase Invoice but it refuses to accept this and tells me 'Unknown Supplier'. Does this mean there is somewhere where I have to enter details of customers and suppliers before the system will accept them?

Also, in the Bank Reconciliation do I enter the cash at the start of the trading year? Is there anywhere to enter Stock?

I'm sorry you're having so many problems with our software. Can you please email us a Solar Accounts data file which shows the problem with VAT? We will look into it.

When you see 'Unknown Supplier' message, you can create a new supplier by opening the supplier drop-box and clicking 'New Supplier'.

You can set the opening balance for your bank account (or any other account) in the Accounts list. Click menu Window > Accounts then expand the Assets group and double-click on 'Cheque Account' to change the balance.

Solar Accounts cannot keep track of individual stock lines, but you can create a new 'Inventory' account to track the value of the stock (click menu File > New > Account).

Hi I have the same problem with VAT not showing in the VAT Return tool. I have made an invoice for goods from supplier and made payment transaction for it. This expense is not showing up in column 7 of VAT return.

Can you help with this?

Hi Jo,

Please click menu File > Backup, then save the backup file and email it to me - this will give me a better understanding of the problem.

Also, what is the invoice number of the problem invoice and VAT period?

Thanks

Hi There

Did you ever get a solution to this as I am having the same issue now! I have some basic money paid out transactions that are showing up in the box 4 list of my VAT return as VAT claimable, however they do not show uo in the Box 7 list at all.

This has the effect of making my claimed VAT more than 20% if my total purchases which the VAT man will not like at all and you get the message about it if you try to submit the return. If you submit then you will probably get a VAT visit.

Normally it is lower because I buy lots of things that are 0 rated for whatever reason (Books, outside UK goods etc).

Everything has worked swimmingly for 7 years but this has me stumped with a VAT return due in 2 weeks.

Any help is very much appreciated.

Hi Dave,

As mentioned in my previous email I think that the problem is that you are expecting the VAT-inclusive amount to appear in Box 7, but HMRC requires the VAT-exclusive amount.

Regards,

I am having the same problems. I hope they have a solutions to these problems. I may be paying too much VAT as the VAT return is inaccurate. Sent my return now.

Hi Juliet - as mentioned in my email I think the problem is that the VAT Treatment on transactions was set to 'Out of Scope'.

Regards,

To all users: If you believe that a transaction should appear in Box 7 of the VAT return, open the transaction window and click More Options > VAT Treatment, then select 'Purchase of Goods or Services from UK Supplier'. It should then appear in Box 7 (as long as you aren't under the Flat Rate Scheme for VAT).