A list of vouchers where the VAT charged on the bill and the VAT on the VAT register row do not match. Every invoice records its VAT twice: once as a bill term on the voucher, and once on the VAT register line that goes onto the return. The two figures should be the same. When they are not, the customer or supplier was billed one amount and the tax office is told another.
When to use it
- Before you file a VAT return, to check that every bill's VAT reached the register unchanged.
- When a month's VAT on the return does not match your sales or purchase totals.
- After you import bills, or after you edit a posted invoice's terms.
Before you start
- You need view access to the Audit reports.
Where to find it
Reports > Audit > VAT Term Reconciliation.
The fields on this screen
| Filter (on screen) | What it does |
|---|---|
| Issue | Shows one kind of problem only. Leave it blank to list every kind. |
The report looks at every year, not only the fiscal year selected at the top of the screen.
Running the report
- Open Reports > Audit > VAT Term Reconciliation.
- Leave Issue blank to see everything, or pick one kind.
- Read Bill VAT, Register VAT and Variance side by side, to see which of the two is wrong before you open anything.
- Double-click a row to open that voucher.
How it works
Each row names one problem and how serious it is. All four are errors:
- Bill VAT and register VAT do not agree: both figures are filled in and they differ. Check the row counts, Term rows and Register rows, before you assume an amount is wrong. One term against two register rows usually means the register line was entered twice, and each amount is correct.
- Register VAT with no VAT bill term: the register declares VAT that the bill never charged. The return will report VAT you did not invoice.
- VAT bill term with no amount: the VAT term is on the voucher but its amount was left empty, while the register line has a figure. Fill in the term; do not add another one.
- Bill VAT missing from the register row: the bill charged VAT but the register line has none, so that VAT is on no return at all.
Tips and common mistakes
- A difference of a rupee or less is not listed. Rounding by a paisa or two is normal.
- A voucher with no register line at all is not listed here. VAT Register Issues reports those, so the same voucher never appears on two reports.
- A discount term is not VAT, whatever its name, so it never counts towards Bill VAT.
- This report does not correct anything. Fix the bill term or the register line, and the row drops off the list.
- If the return for that month has already been filed with the tax office, speak to your accountant before you change either figure.