To Clear your VAT Control Accounts (VAT Cash Accounting)

1.   Make a note of the values in box 1 and box 4 of your Sage Line 50 VAT Return, and whether each is a positive or negative value.

For example, the value in box 1 may be 5000 and positive, and the value in box 4 may be 3500 and positive.

Use the Nominal Ledger Journal Entry option to post a journal entry for these values to transfer them to the VAT Liability Account (2202 by default).

In this example you would post the following journal:

2.   To make your journal entry, from the Nominal Ledger window click Journals.

The Nominal Ledger Journal Entry window appears.

3.   Post your journal entry as shown in step 1

4.   To process your journal, click Save. You can only save your journal entry when the value in the Balance box is zero.

To clear these entries and start again, click Discard.

5.   To return to the Nominal Ledger window, click Close.

Using VAT Cash Accounting, the Sales and Purchase Tax Control accounts very rarely return to zero after completing the above journal transfers.

Your next step...

To Back Up your Data

To Submit your Tax Return

Related Topics

How your VAT Return is Calculated

Running the VAT Cash Accounting Scheme

Producing your VAT Return

Analysing the VAT Totals

Printing the VAT Return Reports

Checking your VAT Return

Reconciling your VAT Transactions

Clearing your VAT Control Accounts

Clearing your VAT Control Accounts using the Standard VAT Scheme

Submitting your VAT Return to the Tax Authorities

Your VAT Return Checklist