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Thread: Why are my journal Expenses being posted to Output Tax in my Tax Box in Pastel?

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    Why are my journal Expenses being posted to Output Tax in my Tax Box in Pastel?

    Hi,

    Please could you assist. I have used the General Journal to debit some expenses (eg. Insurance) and have credited the owner's Loan Account. I am completely confused, as these expenses are showing up in my Tax Book as Output Vat !

    Thanks so much if you have any advice.

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    Diamond Member Neville Bailey's Avatar
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    There's a little trick that you need to know about when using General Journals with VAT...

    Always process the Balance Sheet side as the first line item, and use the contra account for the Income Statement accounts.

    In your case, credit the Loan Account first and debit the first expense account in the Contra column - repeat for the remaining expenses.
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    Thank you Neville - that was a HUGE help !

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    Hi,
    I have the same problem with Fringe Benefit VAT - it doesn't appear in the Tax type report and the 'Balance of the Tax Control Account' and the 'Tax total' amounts differ. I would like to get this right before I pay this month's VAT. Used to use Quick Books and this didn't happen but now that I am using Pastel Xpress it is a worry. I take note of what you told this person and am wondering whether I need to do this for the entire year ?

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    I have entered the balance sheet account first and the expense account as the contra account.
    The contra preview shows that the loan is credited with the full amount, the expense and and the vat account is debited? Shouldn't the vat account be credited for input vat?

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    A credit would be an increase in the VAT liability, whereas you need a decrease (a debit).

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    Yoh! I have had this problem many times before. What worked for me in the past was not using the contra account - type in your debit, make the contra account 0000/000, then type in your credit.

    This issue has had me pretty confused on numerous occassions!!

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    I agree with Andromeda. If you posted an expense, your VAT would be debited, so it sounds right this time around.

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    Quote Originally Posted by JeanAnne View Post
    Hi,
    I have the same problem with Fringe Benefit VAT - it doesn't appear in the Tax type report and the 'Balance of the Tax Control Account' and the 'Tax total' amounts differ. I would like to get this right before I pay this month's VAT. Used to use Quick Books and this didn't happen but now that I am using Pastel Xpress it is a worry. I take note of what you told this person and am wondering whether I need to do this for the entire year ?
    How did you account for fringe benefit VAT?

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