The VAT return includes Sales and Purchase Ledger transactions
(not nominal transfers) that are fully paid (allocated) during the
relevant VAT period.
In IRIS Accounts Office invoices remain unpaid until such time they
are fully allocated. Any invoices fully allocated during a VAT
period will appear on the current VAT return.
When a transaction is fully allocated, the current VAT period is
recorded on the transaction with the allocated amount in that
period. This allows VAT reports to be produced showing all the
invoices paid in the selected VAT Period. This allows a transaction
to be 'allocated' in one month and 'unallocated' in the next month,
if there is a genuine reason for doing so. (e.g. credit note
received after paying for goods etc.)
Note: It is essential when using Cash Accounting
the VAT periods are understood to make sure VAT periods are closed
before allocating transactions that belong on the next VAT
return.
The
VAT Set-Up screen, accessed by pressing
[
F5], is where the VAT Period information is
set-up. This screen shows the date of the 'Last Tax Return', the
return period and 'Current VAT Period'.
Important: The 'Current VAT Period' represents the
true calendar month and year (not your company's financial period
and year as set up in IRIS Accounts Office) of the current VAT
Return. This VAT period is also shown on the printed VAT Return
form received from HM Customs & Excise.
When using the cash accounting method 'fully allocated'
transactions are included on the VAT return for the current VAT
period, regardless of the date of the transaction.
Any 'allocated' transaction previously declared in a submitted VAT
return and closed VAT period, that is subsequently unallocated,
will appear as a negative value in the current VAT report for the
current VAT period. In effect, this recovers the previously
declared value. If the transaction is reallocated in the current
VAT period, no entry will appear for either the unallocated or
allocated value.
Note: The VAT period must be closed on the last
day of the VAT period (or after the last payment or receipt is
allocated for that period) before any allocated payments or
allocated receipts that belong in the next VAT return are
entered.
If the VAT period is not closed immediately, the VAT report will
include fully allocated payments and receipts dated after the last
day of the current VAT period.
