Creating VAT Return Adjustments

Where creating a new VAT Return clicking on the button on the GL VAT Return Header form, as detailed in the Creating VAT Returns section, will open the GL VAT Return Adjustment form allowing you to enter Adjustment transactions into the VAT Return.

Where amending an existing VAT Return, clicking on this button on the GL VAT Return Header form, as detailed in the Amending/Viewing VAT Returns section, will also open the GL VAT Return Adjustment form allowing you to enter Adjustment transactions into the VAT Return.

The GL VAT Return Adjustment form will open:

To create an adjustment click on the button and certain fields on the form will become available as well as new buttons:

The adjustments created on this form will be held against the relevant Box line on the VAT Return.

Where required GL Journals can be created for these Adjustments that will also update the General Ledger.

The available fields on this form are as follows (mandatory items are notated with a red asterisk *):

GL Trans Code: Where a GL Journal is to be created for the Adjustment, i.e. the Adjustment will be added to the relevant Box line in the VAT Return and it will also update the General Ledger, select the relevant GL Transaction Code from this drop-down list.

Where the Adjustment should not update the General Ledger, i.e. it should only be added to the relevant Box line on the VAT Return, leave this field blank.

Department: This field will include the same Department as on the GL VAT Return Header form and should not be changed.
Section: This field will include the same Section as on the GL VAT Return Header form and should not be changed.
Post to Closed Periods: Please ignore this option.
GL Posting Date: This will include the same date as on the Obligation Start Date field on the GL VAT Return Header form and can be changed, if required.
Reversing Date: Please ignore this field.
Reference: Where the Adjustment also generates a GL Journal, add any Reference to be included on the GL Journal to this field.
User Analysis: Where the Adjustment also generates a GL Journal, add any analysis information that is to be included on the GL Journal to this field.
User Data: Where the Adjustment also generates a GL Journal, add any data information that is to be included on the GL Journal to this field.
Narrative: Where the Adjustment also generates a GL Journal, add any further information that is to be included on the GL Journal to this field.
Defaults: Selecting this option will display the following fields:

These fields are included in the Adjustment LInes tab on the Grid at the bottom of the form and selecting this option allows you to add default Ledger Codes for each of these fields, i.e. when an Adjustment Line is created in the Grid these fields will be populated with these default value. The Ledger Codes for these fields can still be changed in the Grid if required.

The Ledger Codes can be added in the above 'default' fields by clicking on these fields and adding the Ledger Code. Alternatively clicking on the Find Ledger button located to the right of each field, for example to the right of the VAT GL Code field, , will open the GL Find Ledger Code form, allowing you to search for and select the required Ledger Code. This form is further detailed in the Find Ledger Code section.

Click on the button and an Adjustment Lines tab will be displayed in a Grid at the bottom of the form:

Add the following details to this Line, where required:

Reason: Select the relevant Reason option from this drop-down field.
Input/Output: The options in this drop-down field are:

Input: Select this option if the Adjustment is for Creditors
Output: Select this option if the Adjustment is for Debtors

Net Amount: Where the Net Amount is to be changed add the new amount to this field - it should exclude VAT. Once added it will be included in the Total Net field on the form:

This value will be used in Boxes 6 to 9 on the VAT Return.

VAT Code: Select the relevant VAT Code for the Adjustment from this drop-down field.
VAT Amount: Where the VAT Amount is to be changed it can be added to this field and it will be included in the Total VAT field on the form:

Where an amount is added to the Net Amount field and a code is added to the VAT Code field in the Adjustment Line, the amount in this field will be calculated when the button, as detailed below, is selected.

The value in this field will be used in Boxes 1 to 5 on the VAT Return.

GL Journal?: This option will be selected by default.

Where the Adjustment Line is to amend the VAT Return and create a GL Journal, this option should be selected. Where the Adjustment is only to amend the VAT Return, this option should not be selected.

Please note: Where this option is selected, also ensure that the relevant GL Transaction Code has been added to the GL Trans Code field on the form.

VAT GL Code: Where the GL Journal option, as detailed immediately above, is selected a GL Ledger Code is required in this field for the VAT Amount included in the Adjustment. This field may already be populated by default. This can be changed or where the field is blank one added by clicking in this field and adding the relevant Ledger Code.

Alternatively clicking on the Find Ledger button located to the right of this field, , will open the GL Find Ledger Code form, allowing you to search for and select the required Ledger Code. This form is further detailed in the Find Ledger Code section.

I/E Code: Where the GL Journal option, as detailed above, is selected a GL Ledger Code is required in this field for the Net Amount included in the Adjustment. This field may already be populated by default. This can be changed or where the field is blank one added by clicking in this field and adding the relevant Ledger Code

Contra GL Code: Where the GL Journal option, as detailed above, is selected a contra GL Ledger Code is required for the Gross Amount included in the Adjustment. It may already be populated by default. This can be changed or where the field is blank one added by clicking in this field and adding the relevant Ledger Code.

To add more Lines to the Adjustment Lines tab on the Grid, re-click on the button.

Lines can be removed from the Adjustment Lines tab by clicking on the button to the left of the required Line. A message will be displayed asking for confirmation that the Line is to be removed.

Click on the button and new buttons will be displayed at the bottom of the form:

The following fields will also be updated on the form:

Adjustment No: A reference number will be generated for the Adjustment and will be included in this Read Only field.
GL Period and Year:

The Period and Year fields will include the relevant Period and Year as defined by the date in the GL Posting Date field.

Total Net, Total VAT and Total Gross:

Where not already updated these fields will be updated to reflect the same fields as in the Adjustment Line.

Further changes can be made to the fields in the form or in the Adjustment Line as detailed above.

Lines can be removed from the Adjustment Lines tab by clicking on the button to the left of the required Line. A message will be displayed asking for confirmation that the Line is to be removed.

The button displayed are as follows:

: Click on this button to save any changes made to the fields and options on the form or to the Adjustment Line tab on the Grid.
: Click on this button to delete the Adjustment. A message will be displayed asking for confirmation that the Adjustment is to be deleted.
: Clicking on this button will clear all the fields and options on the form - these will revert back to their default values - and remove the Grid from the bottom of the form. The initial GL VAT Return Adjustment form will be displayed, where you can create a new Adjustment or view an existing one. Any unsaved changes will be lost.
: Clicking on this button will create a new Line in the Adjustment Lines tab on the Grid, as detailed above.
: Clicking on this button will open the Audit Info screen providing audit information on the Adjustment. This screen is further detailed on the Audit Info section.
: Click on this button to complete the Adjustment. The form will change to a Read Only version of the GL VAT Return Adjustment form:

The status field will also change to Complete. As the form is a Read Only form no further changes can be made.

Where a GL Journal has been created from the Adjustment, the Journal No field on the form will be populated and the button will be enabled. Clicking on this button will open the GL Standard Journal (Readonly) screen providing details of the Journal. This screen is further detailed in the Viewing Standard Journals section.

The Boxes Populated column on the Adjustment Lines tab on the Grid will detail the Boxes on the VAT Return that have been updated.

Please note: The VAT Return boxes for each Adjustment Line are updated according to the entered Input/Output type and the VAT Type associated with the input VAT Code as determined by the CO Company VAT Types form.

In some cases two or more VAT Return transactions are created from the one Adjustment line, as indicated in the Boxes Populated column on the Adjustment line.

The following table details the Boxes that will updated on the VAT Return dependent on the information added to the Adjustment Line:

Processing of Adjustment lines for each Input/Output Type and VAT Type
Input/Output	VAT Type	Update Boxes	Description
Input (i.e. Creditors)	Standard Rate (S)	4 and 7	Box 4 – VAT Reclaimed on Purchases updated with the entered VAT Amount Box 7 – Total Purchases excluding VAT updated with the entered Net Amount
	Reduced Rate (R)	4 and 7	Box 4 – VAT Reclaimed on Purchases updated with the entered VAT Amount Box 7 – Total Purchases excluding VAT updated with the entered Net Amount
	Zero Rated (Z)	7	Box 7 – Total Purchases excluding VAT updated with the entered Net Amount
	Exempt (E)	7	Box 7 – Total Purchases excluding VAT updated with the entered Net Amount
	Outside Scope (O)	7	Box 7 – Total Purchases excluding VAT updated with the entered Net Amount
Output (i.e. Debtors)	Standard Rate (S)	1 and 6	Box 1 – VAT Due on Sales updated with the entered VAT Amount Box 6 – Total Sales excluding VAT updated with the entered Net Amount
	Reduced Rate (R)	1 and 6	Box 1 – VAT Due on Sales updated with the entered VAT Amount Box 6 – Total Sales excluding VAT updated with the entered Net Amount
	Zero Rated (Z)	6	Box 6 – Total Sales excluding VAT updated with the entered Net Amount
	Exempt (E)	6	Box 6 – Total Sales excluding VAT updated with the entered Net Amount
	Outside Scope (O)	6	Box 6 – Total Sales excluding VAT updated with the entered Net Amount