Hi Catherine,

Thanks for using Sage City.

It's the transaction tax code and how that code is configured that determines when and how a transaction appears on a VAT Return. The nominal code is not associated with the tax code so the nominal code itself would not have an effect.

To determine why the transaction is not appearing on the VAT Return, we need to look at the tax code of the transaction and the transaction type, you can see this information in the activity windows or the transaction list.

Happy to look at it further if you can share some more detail here.

Regards

Andy
Sage UKI

Hi Andy, thanks for your response. It was a journal entry, tax code is T1 (I changed this from T9 when doing the journal debit and credits) however the tax column in transactions shows zero value. 

Hi Catherine,

Thanks for coming back.

With journals, to correctly affect the VAT Return, you need to split the net and VAT values onto different lines and post to the required nominal code and tax control account. The following article explains how journals affect the VAT Return with a couple of worked examples: Post journals so the VAT Return is correctly affected. 

I hope that's useful, but if you require any further guidance just reply here.

Regards,

Andy
Sage UKI

That’s great Andy thanks, I followed example 2, boxes 4 and 7 now look correct however the journal credits shows in box 6 as a sale, including the ones I have previously reversed so the total value is being included as sales? 

Hi Catherine,

Pleased the article helped, we've got a couple of options with investigating that sales value. If possible, and appropriate, you could share the details of all journals posted so far here with a quick overview of what you wanted to achieve, or you can contact Sage Technical Support so they can dig into it a bit further for you. If you'd prefer 1-2-1 support with this you can call or webchat to them using the details here >

Andy

Hi Andy

Ive done a journal debit for a fixed asset with credits to the bank and the loan account. And reversed them when I saw they didn’t calculate correctly for VAT so ideally I need to delete them but the delete button in the transaction is greyed out. The journal credits are showing as sales income in box 6. There’s a JC to bank, a JC to loan, a JC reversal of the debit fixed asset account all showing there. Although the VAT due in box 5 is not including them. Hope you can help! Thanks 

Hi Catherine,

Generally journals are better reversed than deleted, by posting the opposite entries on the same day and undoing the effect of the original journal.

To look at your missing VAT value we'd need to know details all of the journals posted so far with dates, values and tax codes including whether you've posted a value to Sales Tax Control and what tax code was used there. If you want to post a list here, we can try to recreate it to resolve or you may want to contact Technical Support so they can troubleshoot without the delay in reply you might see in Sage City.

Thanks,
Andy