DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

VAT calculations wrong?


#1

I don’t know if its me not understanding something, but it appears to be entering in the wrong information in the VAT Return report!

The Net VAT to be paid appears to be correct, but the boxes 1,3 and 4 are wrong as the amounts should be as shown in the tax transactions table.

This is just a test account as I wanted to spend some time learning the software inside and out. Everything seems to be working except for this. The amount of tax paid is £43.67 not £263.33 This is for UK VAT return at standard rate of 20%


#2

The difference between figures could be that one report is generated on cash-basis and the other is generated on accrual-basis.

Also not sure what could cause minus figure in field #4. If you are unsure, you can send your test file to support@manager.io


#3

All the reports are cash based accounting. I created a new business and I created one transaction sales and purchases and it seems to be the correct amount now! I think that I am going to leave that issue for the moment, because I suspect that as I have been creating dummy transactions to see how the program works, it is probably to do with the fact that I have sales for goods that have never been bought etc. And some of those goods have no VAT etc. This may be the problem, but I think it appears to be pulling the wrong fields!

However, I encountered something rather interesting when I created the VAT Test business. Firstly, you can add a VAT registration number for clients but not for suppliers. I am not sure if you are intending to add VAT reg numbers for suppliers in the future, or if you put it for clients when you meant for suppliers. For TAX reporting purposes its usuful to have the Suppliers VAT number, I don’t know when the VAT man would ever be interested in whether the client is VAT registered?

Secondly, if I create a sales quote using a sales on inventory item it posts the amount correctly. If I copy that to a sales order, all is fine although it changes sales of inventory to inventory on hand. When I copy the sales order to a purchase order, it changes the name from sales on inventory to inventory on hand, but it does not reflect the inventory on hand purchase price, it reflects the sale price!

I have sent you the data file for both businesses, if you want to look at the wrong VAT amound in the first business which is called New and if you want to look at the inventory on hand and sales of inventory to see if I am doing something wrong. Thank you.


#4

after reading the question i have tried it my self and it works fine for me, no issues.


#5

Yes I have already said that the VAT calcuations work for me in a new Test business. So obviously the issue with the figures posted in the original test Business. As for the Inventory on hand and Sales issue, I can replicate problem in both test businesses. I am using the very latest version of Manager.


#6

As per VAT issue, I fixed that in the latest version (15.1.73). Basically what happened, you have used an expense account on sales invoice - something you wouldn’t probably do in real business.

So when you have received money on that invoice, Manager identified it as a purchase refund for VAT Calculation Worksheet purposes rather than a sale. That’s why you ended up with negative figure in #4. I fixed this issue so no matter what account you use on sale invoice, it will be always identified as a sale.

The net VAT to be paid figure (646.33) was still correct though.


#7

Thank you for taking the time to look into the VAT issue. I suspected it was something to do with me putting in something wierd in one of the dummy transactions. I must have selected the wrong account by mistake as I was not intending to use an expense account for a sale!

I trust that the problem with the price issue with the sales inventory and inventory on hand is something dumb I am doing! Thank you.