Quickbooks & Output Vat

[MadJan]

Hi All,

I am using QB Premier 2008. I need some serious help :-( with Vendors vat setup. Entering the bill..all good and dandy...but nowhere does it show the amount excl and incl Vat, as a result the bill gets captured incl vat. So its obvious that the Vat Payable Ledger will not reflect the Vat portion of accounts payable.
How do i split up the vat on a bill to reflect correctly?
What i have done is entered a bill and split as: eg selected the relevant expense account eg
1. A Stationers with the amount of R100
2. Beneath that is the Vat Payable amount R14
3. Selected the vendor account A Stationers.

This now reflects correctly in the General Ledger as Accounts Payable (Split)...BUT now in the Vendor Centre this vendors account shows a -R14 balance....i am now about to shoot myself!!!!!

Please help :-(

[mikeytdurbs]

Hi Madjan

I dont get it.

If you purchased stationary for R100 from a VAT vendor the VAT RECEIVABLE will be R 100 * 14/114 = R 12
The journal entry will be
Cr Creditor A Stationers R 100
Dr Stationary R 88
Dr VAT Input R 12

[Dave A]

There is a tick box on the bill capture page for Inclusive or exclusive of VAT. The location is not always obvious - but probably bottom left.

If you're doing this via journal entry, there is a bit of a trick to getting the VAT to behave correctly. I'd recommend using the Bill form wherever possible.

[MadJan]

Hi Dave i have attached what the bill looks like i dont see anything that allows me to select inclusive or exclusive Vat. I use this all the time to capture bills, expenses, etc.

[Dave A]

Probably a setting issue then. Check this setting:

Edit > Preferences > VAT > Company preferences

Make sure the option to allow for VAT inclusive figures is enabled.

[MadJan]

Thanks Dave, will check it out...you're a star :-)

[Dave A]

Upon closer examination, it looks like whomever set up the software has tried to eliminate anyone playing with VAT the way the software intended.

Is the VAT option enabled?

What troubles me is my bill form includes a selectable VAT column. See attached.



I was wondering if there might be version issues too, but ultimately I've had this setup since QB 2003, so I doubt that's it.

If VAT is already enabled, you're probably going to have to modify the bill template.

[MadJan]

I think its probably a version issue....nowhere do i find VAT....



urgh

[Dave A]

Damn straight it's a version issue. Probably the USA/Canada one, although there are also derivatives for Australia and Asia which use GST rather than VAT.

If you're going to continue using that version, it's going to take a bit of a work-around when capturing expenses with input VAT. Obviously you can use the GST functionality to deal with Output VAT.

If you create a main ledger account (other asset or liability) to track VAT inputs, you can post the Input Vat portion of the bills there. It means capturing two lines for each bill/expense - the VAT portion and the expensed portion.

[Dave A]

I'm reading your first post again... you're obviously trying to do the workaround anyway.

I suggest take a close look at what the Input VAT line you're adding is actually posting to. If it's posting to Accounts Payable - that's your problem right there.

[MadJan]

I am now ready to throw myself off a bridge!!!

[Dave A]

No piece of software (or hardware) is worth that. PM sent.

I'm sure we'll get to the bottom of it.

[MadJan]

Thanks Dave, really appreciate your input...haven't gotten round to fixing it yet....just been so busy....and just for the record, the accounts were already set up when i took over lol....
Thanks again....everyone that contributes on this forum are really awesome!!!

[Dave A]

The suspense has been killing me, Jan.

Just kidding - I've been swamped with end of financial year stuff myself

I'm pretty sure it's the customer field entry that's causing the problem (that would be near 100% certain). Would love to know the results though when you get to it.

[hubertmcintosh]

That's happened because of version issues. I have experience it before when I installed new version QB software. It messed me up there's a little changes from old to new version but it fixed already after taking lot of times to discover.