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Community > Accounting >

VAT Reconciliation

Started by Sharon Tully -   in Accounting

Hi
I am trying to reconcile my VAT control account to my VAT return. Whilst the VAT reconciliation report is helpful to a point, I need further information.

I need to be able to identify those postings in my VAT control account which have not been included in a VAT return.

Is there a field (hidden or visible) that Xero populates on each GL line item identifying the VAT return that the items is included in?

If so, is there a report I can run on the line items in my VAT control account to see the flag so I can identify those items which have not been reported.

Alternatively, is there a report which i can run which will show the document date and posting date on my GL items in my VAT control account. As an example, i have a purchase invoice that was posted on 31 Aug 16 with no vat but then amended on 21 Aug 17 to record the VAT. So the VAT has been posted to the control account with a posting date of 31 Aug 16 but was never on my q/e Sep 16 VAT return as the VAT was only recorded on 21 Aug 17.

Thanks in anticipation of your assistance
Hi Sharon!
Unfortunately both your requests do not support by Xero at the moment. you will have to manually reconcile your VAT control account to VAT return using VAT reconciliation report and sales and purchase detailed reports and other available reports which I believe should not be much of a work.

Regards,
Mewan
 

mewan peiris  

Thanks for jumping in here, Mewan. As he mentioned, Xero hasn't been designed to work as you've described, but uses Late Claims instead. If you let the team know what's happening for you, and invite them in they might be able to get your late claims working for you again.
 

Brittany H (Community Manager)  

Hi Brittany & Mewan,
Thank you both for your responses. The Late Claims section on the VAT return is working correctly thank you. It's just that i wanted to be able to identify items in my general ledger VAT control account against the specific VAT return. However it is fine, I have done a manual workaround
Thanks
Sharon
 

Sharon Tully  

Hi Sharon !
Really nice to hear that.

Regards,
Mewan
 

mewan peiris  

I would like to see a report of VAT transactions that have not been included in a VAT return too.
 

Tom Trainer  

Isn't this a fairly basic requirement - i.e. running a report which shows the difference between a filed VAT return balance and the balance that XERO reports for VAT? You pay a lot of money for expensive software and the answer to this query is apparently having to do a manual tick box exercise?
 

David Robinson  

I'm really struggling to reconcile the VAT on almost all of my clients, there are always differences when I look and unlike most software packages I'm unable to run a simple report showing the individual items in the VAT control that are unreconciled. The VAT reconciliation report is next to useless and we don't have the time or the budget to manually tick through all items on the VAT control vs filed returns. I think this should be high on the priority list to introduce to the software.
 

Louise Hilton  

Hi Louise, we have a request over here for the ability to drill into the report, which you might like to add your vote to.

Just to note here for anyone viewing this thread, there are a few things to check when running the VAT Reconciliation Report to ensure it's correct when reconciling your balances, and heaps more info on this page, around this report.
 

Lauren C (Community Manager)