The Vat tax amount in the opening inventory does not show in tax summary as in the tax report it shows only the new vat purchases and does not show the vat paid for the opening stock
That’s correct. Why do you think it’s wrong?
because the vat to be paid at the end of the month does not reflect the items sold from opening inventory and shows vat collected as a bigger amount than the vat paid
this si only for opening stock
am actually trying to migrate from another software called tally and the opening stock as of 1st april is the vat i am talking about for the items sold.when i go to tax summery at the end of the month i have to pay more vat as per this report
Previous accounting software should give you VAT report for the period you’ve been using it and Manager will give you VAT report since the start date.
Opening stock cannot show on tax summary report because Manager has no idea when you actually acquired that stock. This is not limitation of Manager. This is how every accounting system would work.
could I create a new purchase as of 1st april and show the vat paid ? is this proper accounting ? sorry to ask this silly question
What’s your start date in Manager and what’s your VAT reporting period?
we pay vat monthly
start date is 1st april
Are you trying to set opening balance for VAT you still owe to tax authority?
no we have already paid the vat as of march 31st only on item bought and sold and kept the balance material in inventory as it is.to be carried over to april . I only need the vat paid for the material bought as of 1st april to reflect in the final vat to be paid by 30th april.
When you take up your opening stock that is done at cost price - before VAT as the VAT had been accounted for when those invoices were processed in your previous system. Therefore, any VAT, depending on the age of the stock, would have already been paid or be a component of your Apr 1 Tax Payable Starting Balance
For example - if you only have opening stock and don’t make any new stock purchases during the quarter, then your Tax Payable (VAT) account will only have VAT collected from Sales.
thanks a lot will make the changes in the cost of the opening stock. Manager is a really cool software