Recoding VAT Codes

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 Recode form.  This form will allow you to change the VAT Code items in Box 6 or Box 7 on the VAT Return that results in a change to the VAT Amount.

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 Recode form, allowing you to change the VAT Code items in Box 6 or Box 7 on the VAT Return that results in a change to the VAT Amount.

The GL VAT Return Recode form is designed to handle cases where the VAT Code is being changed and the associated VAT Rate is therefore changed.  These changes are required to the values in the VAT Return boxes and a GL Journal is potentially required to reflect the changes back into the General Ledger.

Such changes could be made via the GL VAT Return Adjustment form as detailed in the Creating VAT Return Adjustments section, by entering an Adjustment to reverse out the original entries and another Adjustment to put in the correct entries.  The GL VAT Return Recode form provides a short cut method to do this by specifying the amended VAT Code and VAT Amount for an existing VAT Return transaction line.  On completion, this then generates new VAT Return adjustment lines to effect the change, along with a GL Journal if required.

For example, if an original Input transaction has been input with a zero-rated VAT Code but should have been standard rated:

• The original transaction would have updated Box 7 with the Gross Amount (£120, say).
• The recode will create a VAT Return transaction to contra out the entry in Box 7 (-£120), add a new transaction for Box 7 (£100), and an entry in Box 4 for the VAT (£20).
• If a GL Journal is required, it will post to the I/E GL Code and the VAT GL Code for the item to reflect the changes back into the General Ledger.

Creating Recode Adjustments via the  button is detailed below.

The GL VAT Return Recode form will open:

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

The VAT Recode adjustments created on this form will be held against the relevant item in Box 6 or Box 7 on the VAT Return.

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

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

• GL Trans Code: Where a GL Journal is to be created for the VAT Recode adjustment, i.e. the VAT Recode adjustment will be added to the relevant item in Box 6 (Debtors) or 7 (Creditors) 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 VAT Recode adjustment should not update the General Ledger, i.e. it should only adjust the relevant item in Box 6 or 7 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.
• Reference: Where the VAT Recode adjustment also generates a GL Journal, add any Reference to be included on the GL Journal to this field.
• User Analysis: Where the VAT Recode 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 VAT Recode 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 VAT Recode adjustment also generates a GL Journal, add any further information that is to be included on the GL Journal to this field.

Click on the  button and a GL Find VAT Return Lines for Recode form will open allowing you to search for and select the relevant item (or Line) in Box 6 or 7 that is to be adjusted.  This form is further detailed in the Find VAT Return Lines section.

Once the relevant Line has been selected, it will be added to an Adjustment Lines tab on a Grid at the bottom of the GL VAT Return Recode form:

The fields available on the Lines in the Grid are as follows (mandatory items are notated with a red asterisk *):

• Reason: This field will default to the Recoding option and should not be changed.
• Narrative: This field will include the narrative added to the VAT Return transaction and can be changed if required.
• Tran Code: This field will include the Transaction Code added to the VAT Return transaction and can be changed if required.
• Reference 1: This field may include a reference added to the VAT Return transaction and can be changed if required.
• Reference 2: This field may include a second reference  added to the VAT Return transaction and can be changed if required.
• Date: This field will include the GL Date from the VAT Return transaction and can be changed if required.
• Input/Output: This Read Only field will include one of the following:
• Input: This will be displayed where the Line is from Creditors.
• Output: This will be displayed where the Line is from Debtors.
• VAT Code: The revised VAT Code should be added to this field - select the relevant option from the drop-down list.

Please note: the original VAT Code and Original VAT Type is displayed in the Original VAT Code and Original VAT Type columns on the Line.

• VAT Amount: This field will be blank but a revised VAT amount can be added if required and this will be displayed in the Total VAT field on the form:

Where this field is blank when the VAT Recode adjustment is completed, a calculated amount will be added that will be the amount in the Gross Amount field less the amount determined by the code in the VAT Code field.

Please note: the original VAT Amount is displayed in the Original VAT Amount column on the Line.

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

Where the VAT Recode adjustment is to amend the Line in the VAT Return and create a GL Journal, this option should be selected.  Where the VAT Recode adjustment is only to amend the Line in 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 VAT Recode adjustment.  This field may already be populated from the VAT Return transaction.  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 VAT Recode adjustment.  This field may already be populated from the VAT Return transaction.  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.

Click on the  button and further buttons will be displayed:

The following fields on the form will be updated:

• Adjustment No: A reference number will be generated for the VAT Recode 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.

The Lines in the Adjustments LInes tab on the Grid will also be updated.

The following buttons are available:

• : 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 VAT Recode adjustment.  A message will be displayed asking for confirmation that it 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 Recode form will be displayed, where you can create a new VAT Recode adjustment or view an existing one.  Any unsaved changes will be lost.
• : Clicking on this button take you to the GL Find VAT Return Lines for Recode form allowing you to search for and add another item (or Line) to the Adjustment Lines tab on the GL VAT Return Recode form, as detailed above.
• : Clicking on this button will open the Audit Info screen providing audit information on the VAT Recode adjustment.  This screen is further detailed on the Audit Info section.
• : Click on this button to complete the VAT Recode adjustment.  The form will change to a Read Only version:

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 VAT Recode 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.