I am trying to make our VAT quarterly declaration match exactly the official declaration we submit to the revenue authority. There are often small differences of 1 or 2 francs between what is in Manager and what we submit. What I have tried to do is to create a journal entry where I debit the Tax Payable account on the last day of the quarter and credit an account such as Extra Income. This is because if Manager shows 1.435.402 of VAT payable at the end of the quarter but the official declaration shows 1.435.401 then in Manager it s like I have saved 1 franc.
However, this adjustment does not appear in the Tax Summary report for the quarter, while it appears in the Tax Reconciliation report. Any idea or solution to this?
The Tax Summary report includes transactions that have a VAT tax code allocated to them. Your journal entry direct to the Tax Payable account is not a VAT transaction.
That should work. But I am curious. Where are you getting figures that are different from those in Manager? Why is there a need for this adjustment at all?
In Rwanda we have to use what they call and EBM machine which basically reports to the revenue authority all sales and the VAT. The machine is the bible and produces report for each quarterly VAT declaration. Due to roundings made by Manager and roundings made by the EBM machine figures from the two systems do not always match. Therefore, in order to have the exact same figures we need to adjust what is in Manager to what is reported in the EBM machine.
I tried by using the 100% VAT option and it worked, but as usual when using the 100% VAT no account should be chosen otherwise it does not work.