Hi. Please can someone advise me why my total nett vat is different to my vat control account balance in pastel and how do I correct this.
Thank you
Hi. Please can someone advise me why my total nett vat is different to my vat control account balance in pastel and how do I correct this.
Thank you
There are a number of reasons that can cause this.
- If you pay VAT or claim VAT for an amount that is different to the previous VAT report, as per Pastel, then there will be a difference when you run the VAT report for the next VAT period.
- If you process back-dated transactions, that have VAT implications, into prior VAT periods.
- If you process journals directly into the VAT Control Account, other than payments to SARS or claims from SARS. It is critical that you only use the relevant VAT code in the "Tax" column to process VAT entries, so that both the VAT Control Account and the VAT reports are updated in sync.
Neville Bailey - Sage Pastel Accounting Consultant
www.accountingsoftwaresupport.co.za
neville@accountingsoftwaresupport.co.za
IronTree Online Solutions
"Give every person more in use value than you take from them in cash value."
WALLACE WATTLES (1860-1911)
Good morning Neville
Thank you for your reply. Please can you tell me how I can correct the vat balance for your reason number 1
Thank you
Kind regards
jackie
Hi Jackie,
If the difference is because of reason 1, then either:
- The VAT was processed correctly, but you paid SARS the incorrect amount; or
- The VAT was processed incorrectly, and you paid SARS the correct amount, based on manual calculations.
If point 1 is the case, then you need to over/underpay SARS by the difference when you submit your next VAT return, and then the VAT Control Account balance will tie up with the VAT report for the following VAT period.
If point 2 is the case, then you need to pass correcting entries in the prior months, so that the VAT is correctly calculated. For example, if you processed a cashbook payment for Bank Charges of R114.00 (VAT inclusive), but you omitted to claim the R14.00 VAT by using the VAT code 01, then you need to do the following two entries to fix the incorrect transaction:
- Recapture the payment in the cashbook, exactly as you captured it originally, i.e. without the VAT code, but put a minus sign in front of the amount. This will effectively reverse the original entry.
- Capture the payment in the cashbook once more, with no minus sign, but now include the VAT code in the entry.
Hope this makes sense.
Neville Bailey - Sage Pastel Accounting Consultant
www.accountingsoftwaresupport.co.za
neville@accountingsoftwaresupport.co.za
IronTree Online Solutions
"Give every person more in use value than you take from them in cash value."
WALLACE WATTLES (1860-1911)
Hi.
I did an inventory journal on pastel but the amount reflected on the trial balance is completely different to the amount I actually processed. Why would they differ?
Thank you
You have overpaid SARS.
Neville Bailey - Sage Pastel Accounting Consultant
www.accountingsoftwaresupport.co.za
neville@accountingsoftwaresupport.co.za
IronTree Online Solutions
"Give every person more in use value than you take from them in cash value."
WALLACE WATTLES (1860-1911)
Ola (19-Nov-20)
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