Skip to content
logo Knowledgebase

I forgot to reconcile my previous VAT Return

Created on  | Last modified on 

Summary

This guide explains what you can do if you didn't reconcile the transactions on your previous VAT Return in Sage 50cloud Accounts.

Description

If you didn't reconcile the transactions on your previous VAT Return, the next time you calculate your VAT Return a message appears informing you that there are a number of unreconciled transactions from before the specified period. 

NOTE: This message may also appear for every VAT Return, if you regularly enter late transactions after you reconciled the latest period, this is perfectly normal and acceptable.

Resolution

Check if these transactions relate to a previously unreconciled VAT Return

  1. Calculate the VAT Return entering the dates for your previous VAT Return period
  2. Check it against the VAT Return that you submitted to HMRC. 

If the figures are the same, you can reconcile this previous period and you're ready to proceed with your current VAT Return. 

However, if the figures are different you need to find out why, this can be one of two scenarios as detailed below.


You haven't chosen to include earlier unreconciled transactions, from the period before

Image

 

To resolve this, run the VAT Return again and in the VAT Return - Earlier unreconciled transactions window choose Include. This now includes the earlier unreconciled transactions:

Image


Earlier unreconciled transactions from the current period are included in the previous VAT Return

Image

To resolve this, you can adjust each VAT Return and submit your current VAT Return:

  1. Click VAT and click VAT Return.
  2. Enter the date range for the previous period and click Calculate VAT Return. If prompted, select to include earlier reconciled transactions.
  3. Click Make adjustments and enter adjustments to match your VAT Return you submitted to HMRC, making a note of the adjustments made, so you can reverse them on the current VAT Return later then click Close.
  4. Click Reconcile VAT Return then click Yes and select the Mark as submitted check-box then click Close.
  5. Click VAT then click VAT Return.
  6. Enter the date range for the current period then click Calculate VAT Return.
  7. Click Make adjustments then enter the opposite adjustments that you noted in step 3 and click Close.
  8. Click Reconcile VAT Return then click Yes and click Submit online.

 


Need more help?

Chat to one of our Sage Ambassadors now.

Chat now

Image

Are you ready for Making Tax Digital?

From April 2022, Making Tax Digital (MTD) applies to all VAT registered businesses. If you're looking for an MTD solution, Sage 50cloud Accounts has what you need.

Find out more >

Image