Reconciling Your VAT Transactions

After you’re happy with the information in your VAT return, you need to flag each individual transaction for VAT so that an R appears in the VAT column of the audit trail and it doesn’t appear again in future returns, unless you ask to include previously reconciled transactions. This process is known as reconciling your VAT return.

To do the reconciliation, you must first calculate the VAT return for the correct VAT quarter. When you can view the VAT Return screen, click Reconcile. A confirmation message appears, asking if you want to flag the transactions for VAT. Click Yes and then click Close.

To check if the transactions have definitely been reconciled, try to calculate the VAT return again for the same period. A message appears stating that you’ve selected a date range that’s already been reported on. Click Yes to continue. Sage then confirms that no transactions were found for that period; evidence that the transactions have been reconciled. You can also check that the individual transactions have been reconciled by viewing the Audit Trail screen and looking for an R in the VAT column.