VAT Adjustment nominal coding

Question

I have done a manual VAT adjustment on my VAT return which relates to a VAT only customer credit note that wasn't picked up on a previous VAT return. 
 This adjustment has been coded to the default nominal code for Manual Adjustments code 2204. Can I journal this to the Sales Tax Control Account which is where it really belongs or should I leave it where it is? I'm not sure if I can journal to a Control Account. 
 
 Thank you.

Paul Morgan · Accepted Answer

Hi Molly, 
 Thanks for using Sage City. 
 VAT Adjustments don't affect the Sales or Purchase Tax control accounts. If your adjustment changes the value in box 5, a journal is posted between the VAT liability nominal code 2202 and the Manual Adjustments nominal code 2204. 
 If required, after reconciling your VAT return, you can journal any associated balance on 2204 to an appropriate nominal code. If you're unsure about which code to use, please refer to your accountant. 
 If this has answered your question please click More > Verify Answer. 
 Regards, 
 Paul 
 Sage UKI

Sage 50 Accounts

VAT Adjustment nominal coding

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING