VAT and reallocations
Checking through last years accounts and noticing some errors made on the ex accountants side.
We now have a new accountant and would like to point out the things I've spotted.
1. There are some wrong allocations as well as allocations including VAT when its not claimable and vice versa...
2. Not all of the foreign invoices (which do not attract VAT have been put on the VAT201's) - this could cause an issue when submitted that record as total sales on VAT201's wont match up to total sales on accounts.
To correct this do I just post prior year journals with the corrections (there are about 10.)
would I need to then resubmit VAT201s with corrected amounts and the addition of ALL foreign invoices? (just the ones affected)
I want to correct all of this before handing over to the accountant so they can do the year end.
You will definitely need to re-submit your Vat Returns with SARS as they need to be as accurate as possible. If you registered to efiling there is a tab "Request For Correction". This allows you to correct any mistakes made previous and keep you safe should your company be selected for a Vat Audit.
I want to correct it as best as possible - not looking for any quick fixes or short cuts - that s how they got in this mess in the first place...
Do I post a reversal on the day of the incorrect amount and then a correction on the same day? That way it will fal in the right VAT period...
Spot On! The date of the transaction is all important to ensure that it falls in the right period. It will take longer but you will also have a better audit trail and more accuracy.
Just to double check - sorry...
DO i post the EXACT same journal but with the amount being a minus?
Yes, that is one way of doing it. The other way [when correcting a mistake], would be to debit the account that was incorrectly credited, and to credit the account that was incorrectly debited. Each transaction would have to be analysed into the affected
Originally Posted by Jennajay