VAT not paid - correction

[Neville Bailey]

Does the date (9 months ago) fall into the previous financial year of Pastel? If it does, assuming your year-end is 29 February 2012, have you run the year-end on Pastel yet?

If you have not yet run the year-end, then I would simply process the invoice in the relevant period. When you run your next VAT report from Pastel, you will notice that the net amount due (or receivable) for that VAT period will differ from the VAT Control Account in the balance sheet by the value of the VAT on that invoice. Simply increase the Output Tax amount by the VAT on that invoice, to bring the two totals back into line. The only problem with this approach is that the VAT correction on your next VAT return will be in the new financial year, which means that your VAT returns in last financial year are not quite correct.

If you have already run the year-end, then you have another problem - you cannot process documents in a prior year (only journals). The only way around this is to process a customer journal (in last year) to record the value of the invoice, but you won't be able to print out an actual invoice document.

Another option will be to process that invoice in the current period...