Update VAT to Nominal with Daily Totals – if set then VAT postings are summarised on a daily basis per tax code used rather than an update run summary per tax code used.
Some Datafile users have accounting periods which do not exactly match their VAT months/quarters. For example, the working month may start on the 3rd of a month and end on the 2nd of the following month, or they may have 13 periods of four weeks each. This can cause issues on the VAT return, where the HMRC require the VAT totals to be specific to calendar months.
When updating to the Nominal Ledger in Datafile, regardless of whether updates are summarised or detailed, the VAT is totalled and dated with the run date of the update (usually the end of the current period). As such the user must take care at the end of the VAT period to restrict entry of transactions in the next VAT period and run a nominal update with a date equal to the end of the VAT period with the scope for error this allows.
New for Release 6.5 the system will now allow you to configure the sales or purchase ledger nominal update to specify ‘Update VAT to Nominal with Daily Totals’. This will result in a daily total of the VAT amount for all transactions being updated to the nominal—a separate entry within the journal for each date. This allows the VAT control accounts to be updated to the accounting period as usual but also allows the Vat Form 100 report to pick up only the sales / purchase transactions related to the current VAT period.
Installation
Application User Facilities
To
enable the facility for Daily VAT Totals on update to the Nominal Ledger a new
parameter has been added to the update definition options for the ledgers. To update select Installation from the main menu followed by Application Manager and then Application
User Facilities. Select the Nominal Ledger application and then the Update from Other Systems option. If using the system update
configuration the update parameters are now displayed, if using the multiple
updating definition confirm the opening of the definition and then select the
update definition required before selecting the Sales / Purchase Ledgers parameter screen.
Update VAT to Nominal with Daily Totals – if set then VAT postings
are summarised on a daily basis per tax code used rather than an update run
summary per tax code used.
Compact / Professional Systems
To amend the Nominal Update Definition for Compact and Professional you select Installation from the main menu, lock out the system, and then select System Profiles before selecting the Nominal Ledger. On save of the system profiles you will be prompted to ‘Change the "Update to Nominal” Definition’ – the parameter screen options are then as per the installation notes above.
Article ID: 19
Created On: Fri, Jun 8, 2012 at 11:04 AM
Last Updated On: Mon, Jun 19, 2023 at 7:05 PM
Online URL: https://kb.datafile.co.uk/article/daily-vat-totals-on-nominal-update-from-sales-purchase-19.html