VAT Return - Journals Not on Report

This article explains the purpose of the Journals Not on Report feature and its implications for VAT reporting.

Purpose of the Journals Not on Report

• The Journals Not on Report highlights any manual journals that have been posted but are not included in the VAT return.
• This report is for reference only and does not require any clearing down.

Key Points to Note

1. Impact on Nominal Accounts:

   • If a journal is posted and excluded from the VAT return, the nominal accounts for VAT will be adjusted.
   • However, the adjustment will not reflect on the VAT return itself.

2. Potential for Imbalances:

   • Excluding manual VAT journals from the VAT return can create imbalances between the nominal ledger and the VAT return.
   • This can lead to discrepancies in your financial reporting.

3. Handling Manual VAT Journals:

   • To avoid potential issues, it is essential to seek guidance before processing manual VAT journals.
   • Always consult the helpdesk for advice to ensure that journals are processed correctly and align with VAT reporting requirements.

Best Practices

• Use this report as a monitoring tool for manual journal entries.
• Regularly review the Journals Not on Report to ensure all VAT adjustments are correctly handled.
• Minimise manual VAT journal entries to reduce the risk of imbalances.