To Clear your VAT Control Accounts (Standard VAT Scheme)

Note: For additional assistance, use the VAT Transfer Wizard to help you to clear your VAT Control Accounts. The Vat Transfer Wizard takes you through creating journal entries step-by-step. To start the VAT Transfer Wizard, select Modules from the menu bar on the main Sage Line 50 desktop, select Wizards from the drop-down menu and select the VAT Transfer wizard.

1.   From the Nominal Ledger window, make a note of the values of your VAT on Sales and VAT on Purchases Control Accounts (nominal accounts 2200 and 2201 by default), and whether each one is a debit or a credit.

For example, it may look like this.

Use the Nominal Ledger Journal Entry option to post a journal entry to clear these balances by transferring 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 the journal entry as shown in step 1entering the transaction details for the VAT on Sales, VAT on Purchases and VAT Liability Nominal Account codes, using the values from the Nominal Ledger window.

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.

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 VAT Cash Accounting

Your VAT Return Checklist

The Financials Window