We pay VAT on cash basis. We have gone from paper accounting to Quickbooks Premier. Following parallel running I have two quarters of VAT history in Quickbooks that has been paid on the old system. How do I clear history to give a clean VAT quarter?
In QB premier you need to run teh file Vat process for each of teh quarters you filed in parrallel running and hopefully you should have teh same figures.
To check first run Vat 100 for the first quarter in QB then file to paper then run second quarter. You could easily have small differences but look at the overall picture. to see if the two quarters balance and the reports equate to the paper system.
Once you know what QB has reported compared to the paper system you can decide the next step. QB should report exactly as the paper system with minor differences for rounding.
Fileing Vat in QB will clear down past periods of filed Vat but as you are cash accounting will have bought forward figures due to the open transactions.
Thank you; one final point in that VAT payments to HMRC were made for the two quarters of parallel running based on the old paper accounting system. These payments have gone through the bank account but, of course, have not been generated by the QB VAT process (and are slightly different from it with the odd rounding issue). How should these two payments be processed within QB please?
If you have now run the Vat filing it would have generated Journals that appear in the pay bills window to pay HMRC for each of the returns.
These will when paid, have cheque numbers allocated to them or you allocate a different number or name. these will be what you reconcile in the bank statement, normally.
Are you saying that you paid by cheque seperately slightly different values?
If so how did you raise the cheques, were they in QB? have you reconciled them yet?
Do the bills to pay HMRC still needing to be paid in QB?
Thanks for the attached. We were running on the parallel paper system (and not on Quickbooks) for VAT to 31 Dec 2011 and paying by cheque the amounts due based on the paper records. The amounts generated on QB are a little different (roundings principally) from the paper based system and the cheques (for the quarters up to and including that to 31/12/11) paid to HMRC. We have been loading entries on QB backdated to 1 April 2011 (start of our financial year). Another wrinkle is that we changed VAT quarter end dates in mid-2011. The only entries not recorded on QB are those for the payments of VAT. Any advice gratefully received.
You could use write cheque using teh original cheque numbers which will allow reconciliation, the cheque is to HMRC and in expense column post to accounts payable. with HMRC in name column. now this posts credits to HMRC and you can use these to pay the bills generated.
From pay bills highlight the bill and select set credits.
