Where to allocate this control account
One is usually a Current Liability and the other a Current Asset
If the two are netted off, then the Net amount will be a current liability or a current asset depending whether you owe the VAT authorities money or they owe you money
For most businesses VAT is netted to one account in the current liabilities section of the Balance Sheet
Read the Guide: https://www.manager.io/guides/8901. Manager will post both input and output VAT for all transactions invoking the same tax code to the same account.
You can split them, but you have to double the tax codes. I used to do it.
But in the end is easier to put all together into liabilities and move the eventual asset only at closing balance day and back to liability the next day.
Thanks but, my concerns is I have my tax claimabe seating in my tax payable ! How to I move it in my VAT/Tax Claimabe control account Screenshot_20200811_222509_com.android.chrome|233x500
As said you have to move them up at closing and down at opening. How? With a journal entry.
@Becca_taxation, I am not sure @Davide answered your underlying question. He told you how to move the account from assets to liabilities. To me, following my post about Manager posting both input and output to the same account, you may have been asking something else.
I think you might have been asking how to combine the two accounts to offset tax claimable against tax payable. There are two ways to do that:
- Edit all claimable transactions by substituting the same tax code you used for payable transactions. If you have a lot, this may be tedious.
- Edit the tax claimable tax code to post to the same account as your tax payable tax code. This will retroactively move all transactions. Then, you could inactivate the separate tax code and just use one in the future.