The VAT return includes Sales and Purchase Ledger
transactions (not nominal transfers, payments or receipts) posted
to the relevant period.
It is important VAT periods are understood and correctly set up
to enable VAT returns to be checked and to make sure transactions
are not posted to the wrong VAT periods.
The VAT set-up screen, accessed by pressing [F5], is where VAT
period information is set-up.
VAT Frequently Asked Questions
Current VAT Period - invoice method
The 'Current VAT Period' represents the true calendar month and
year (not the IRIS Accounts Office financial period and year) of
the current VAT Return. This VAT period is also shown on the
printed VAT Return form received from HM Customs &
Excise.
All sales and purchase ledger transactions (i.e. invoices, credit
notes and journal entries) dated before the last day of the current
VAT period and posted, are included in the VAT return. Any
transactions dated before the start date of the current VAT period
are highlighted as an 'out of period transaction' and denoted with
an asterisk, meaning they belong to a previous VAT return but not
entered at the time the previous VAT return was closed.
Any transactions posted with a date after the last day of the
current VAT period will automatically be posted into the next VAT
period.
The VAT Return prints a list of all transactions included in the
current VAT period, followed by a summary page representing the VAT
return form to be completed. The transactions are sorted in order
of type (i.e. PCR, PIN, SCR, SIN etc.) and sub-sorted in
transaction number order. To check the VAT Return is correct, print
a set of Sales and Purchase Daybook reports for the same Exchequer
accounting period range as the VAT period.
These reports show all sales and purchase ledger transactions, in
numerical order, and give net, VAT and total amounts of the
transactions. Compare the totals of both reports with the totals on
your VAT return. As the VAT return is driven by transaction date
and the daybook reports driven by the period of the transactions,
there may be a difference between the two.
If the reports are not the same look for the
following:
- Back dated transactions (i.e. with a previous
period/date not falling within the VAT period) will appear on the
VAT return as an 'out of period transaction' highlighted with an
asterisk
- Transactions accidentally given the wrong
period (i.e. outside the VAT period) but have the correct
date will appear in the VAT return but not in the daybook reports -
as the period of the transaction falls outside the period range
selected
- Transactions entered with a period within the VAT
period, but dated after the current VAT period will not
appear in the current VAT return. They will show in the following
VAT return, but will appear in the daybook reports, as the period
of the transaction falls within the period range
selected.
Closing the VAT Period
The current VAT period does not need to be closed until the VAT
return has been finalised and the values shown on the printed VAT
report are transferred to the HM Customs and Excise VAT return
form. The VAT period can be left 'open' until almost a month after
the end of the VAT period as transactions dated after the last day
of the current VAT period are automatically posted to the next VAT
period.
Close the VAT period from [F5] VAT set-up screen.
