Hi,
I have £2972.00 VAT payable for date 2017-07-31, but I do not see this obligation on Balance sheet for this date. What I am doing wrong? I have been posting journals to VAT Control Account, but I do not see this on balance sheet. Where is VAT account hiding?
Thanks
Manager is 17.7.67
OS Win10
Why ?
You need to explain what process you have been doing.
Normally entries to the VAT Control account come from Sales & Purchase Invoices.
Because VAT is paid by related company, thus I post VAT payment directly to loan account.
But my question was not where are normally VAT accounts posted, my question was - how to make VAT Control account appear on balance?
Ok, understood.
To be able to post to a VAT Control Account, means that you have selected that account within the Journal, and the only way that is available for selection is via having a Tax Code selected.
Journal account selection
Balance Sheet
If you aren’t getting this then you need to post screenshots of what you are seeing.
ok, got the idea. I will try soon and get back with the result.
Thanks!
If I can assign any account I want to the tax, please, can you tell me what is the purpose of the account “Tax payable”?
Tax payable is a hard-coded account to which tax credits and debits from defined tax codes are automatically posted when tax codes are selected for any line item on any form. This is the account where taxes collected are offset against taxes paid, if that is how your tax works. And this is where all in-built tax codes are posted.
While you can create custom control accounts and assign tax codes to post to subsidiary accounts under them, you lose much functionality by using your own accounts. A better way is to work through the hard-coded account, as described in this Guide: https://www.manager.io/guides/7171. While the Guide is for multi-component custom codes, it outlines the method for using Tax payable as a pass-through account to retain all functionality.
The Tax Payable account is a control account which collects the related tax components of Sales & Purchase Invoices.
In my above examples I have renamed the Tax Payable to VAT Control account as I had assumed that’s what you had done:
For which taxes it serves? there a bunch of various taxes that I prefer to see on separated accounts, do not get it how can their be put into single one.
Did you read the Guide I linked to? It explains clearly how to see separate accounts for different taxes. Otherwise, they all go to Tax payable. That is no different from water, electricity, and gas expenses all being posted to the same Utilities account.
When you want more complicated reporting than Manager provides by default, the setup gets more complicated.
From this Guide, I see that you are talking about sales tax with different rates (or VAT tax with different rates). I understand this, but there are other taxes (like PAYE, Corporation tax, Excise duty and so on). I assume, that “Tax Payable” has nothing to do all these, is that right? It is dedicated to sales taxes, isn’t?
Thanks
@Solnce - If Business A had a VAT payable balance of 2792 at Jul 31 and Business B paid that balance, then the Journal (if dated Jul 31 ?) would transfer the balance from Tax Payable to the Loan a/c as of that date.
Before Journal
After Journal
However, if the Journal was dated in Aug then try changing the Summary tab - Set Period “until” date to Jul 31 and the tax payable account balance should re-appear.
If this is not your situation, then you need to provide more details as your picture is not clear.
Yes, other taxes go to different accounts
Thanks, Brucanna, I have figure out where was the problem. It was no starting balance at beginning of the year, and when account is 0, it does not appear on balance, but I do not get the idea of “Tax payable”. Technically I understand how it works, but I do not see difference vs custom tax account (vs mine aka “VAT control”). I prefer having my custom accounts like:
Tax Liabilities:
-VAT (= “Tax payable”, but it does not go under group)
-PAYE
-Corporation Tax
etc.
is that how it works?
@Solnce, you seem to be mixing questions and discussions about different sorts of tax liability accounts into one thread. You began by asking about VAT and a VAT Control Account. Of course, a VAT tax code would apply only to purchases or sales line items. Then you asked about Tax payable, which applies only to the same. You never answered the question as to whether VAT Control Account was something you created yourself or a renamed version of Tax payable.
Only in your next to last post did you introduce PAYE, Corporation Tax, etc. To be clear, taxes like those have nothing to do with tax codes, which are basically applied to line items bought or sold.
Some of your statements are confusing. For example, you have referred to VAT Control Account like it might be a custom control account. But you have also written things suggesting it might just be an ordinary account called VAT control or VAT. Then you equated VAT to Tax payable, but said “it does not go under group.” So really, no one trying to answer your questions knows what your situation is. Perhaps a screen shot of your chart of accounts would help.
And regardless of what your accounts are, you can assign them to any group you want. For example, here is the in-built Tax payable account assigned to a group named Tax Liabilities:
Tax Payable is the control account linked to the in-built Tax Codes for VAT/GST etc
This linkage has operating in the background functionality which your custom tax code wont have.
Then edit it so that it does
Thanks for explaining, I’ll explore that bit later, but thanks anyway!
I could these as I wanted, everything works fine, thanks!