T9 Transactions (again)


Hi All,

I'm about to start preparing my December VAT return and am aware of a difference between my nominal ledger and the VAT return. The difference arises from a T9 transaction (input VAT on a journaled entry) on the nominal ledger that does not report to the VAT return.

My VAT nominal ledger accounts are:

2200 Output VAT

2201 Input VAT

2202 VAT liability

My understanding is that when the VAT return is generated and submitted, all of the transactions on accounts 2200 and 2201 that report into the return are transferred to account 2202, ready to meet with the payment. This leaves any previously posted T9 transactions on accounts 2200 and 2201.

In order to claim the correct input VAT, I intend to make an adjustment when preparing the VAT return, so that the input VAT total on the return agrees to the accumulated balance on account 2201.

If I do this, am I right in thinking that once the return is submitted, the transfer from accounts 2200 and 2201 will leave the T9 transaction on account 2201 and once the return is paid, there will be an equal and opposing balance on 2202 (due to the return and payment being less than the amounts transferred to 2202)?

All I then need to do is journal the equal and opposing difference between accounts 2201 and 2202 and everything is as it should be?