VAT PAYMENT RELATING TO PERIOD PRIOR TO OPENING BALANCES

Good evening, I'm just setting up my cashbook from banking, having set up the import function - very handy. Having set up my opening balances, I have a VAT payment to HMRC in the 1st month that relates to a period prior to the opening balance. What VAT code do I use? 2200 perhaps?  I'm concerned it will mess up the next VAT reporting period?

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  • Hello,

    Thanks for contacting us using Sage City.

    These transactions would need to go against the Vat Liability code which is normally set up on 2202. You first of all would set up an opening balance on this ledger codes for what you're going to pay by going to settings>opening balances. Once the opening balance is in you would then need to go to settings>chart of accounts>select the Vat liability ledger and make sure this is visible as a money out transaction. You will then be able to post this payment to the correct code and clear down the liability.

    Kind Regards

    Richard

Reply
  • Hello,

    Thanks for contacting us using Sage City.

    These transactions would need to go against the Vat Liability code which is normally set up on 2202. You first of all would set up an opening balance on this ledger codes for what you're going to pay by going to settings>opening balances. Once the opening balance is in you would then need to go to settings>chart of accounts>select the Vat liability ledger and make sure this is visible as a money out transaction. You will then be able to post this payment to the correct code and clear down the liability.

    Kind Regards

    Richard

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