Account Transactions Report - Show VAT for Bank Accounts
To enable VAT to be shown on Account Transaction Reports for BANK ACCOUNTS
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When reconciling the VAT to the VAT Reports, it is necessary to pick up the VAT from each type of transaction. We can pick up some of the outputs from the Sales Day Book (Receivables Invoice Detail) and some of the Inputs from the Purchase Day Book (Payable Invoice Detail) but what of the VAT which is dealt with straight from the Bank Account with no related Invoice / Bill.
VAT Inspectors require a clear audit trail and although the VAT Reporting itself shows each transaction, it is currently difficult to PROVE that everything is there.
Graham Oddy
shared this idea
Hi team, we wanted to return and provide a further update to the idea here understanding it's still getting some attention. As mentioned in my last post we introduced a common format('Account Transactions with tax rates') within the General Ledger Details report that provides a more direct overview of the tax entered for all transactions in your organisation. It includes all transactions that have a tax implication to the ledger regardless of where they came from.
To provide a bit more on how tax treatment is shown and how Xero works - Xero automatically splits transactions to record the tax element of a transaction based on the tax rate selected on lines of your transactions, this saves you time having to record the apportionment in separate lines.
Bank transactions that are shown in reports are the amounts that have been received in your actual bank account and there fore they do not have a tax element themselves, instead this is represented on the nominal account/s a bank transaction is reconciled to in Xero.
For example, you receive $1,150 in your bank account. This is reconciled as a Receive money to Sales with the tax rate set to tax on income at 15%. In Xero the journal will show 3 lines - the bank transaction for $1,150 with no tax element, $1000 to the Sales account with the tax element of tax on income, and $150 recorded to your tax account(GST/VAT etc). You can see my image for how this is shown in Xero.
We hope this provides more insight into how tax works and is shown within Xero to help you retrieve the information you're in need of.
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Lynn Sheppard
commented
Clients using Cash Accounting scheme for VAT - I need to be able to identify and reconcile the vat element per bank account if one client has multiple bank accounts. I chose the option Bank Transactions by date in Account Transactions and chose the options to include VAT, VAT rate but it was showing 0%. If you are able to choose these options, can you not get them to work? My client does not understand VAT returns but needs a breakdown of VAT per bank account.
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Susanne Harrison
commented
This would be very helpful for a client of ours.
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Joy Ireland
commented
I am having similar issue with the cash summary not showing vat in the correct place (Ive been advised it works in the old cash summary report) but understand the old report will be phased out.
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michelle Gorman
commented
Please can we have a report from the bank to show payments and receipts with VAT elements?
Sage has this and it was so useful for VAT reconciling instead of having to run a bank transaction report, isolating the bank transactions then having to go into the nominals to gain information. You can not also do this from the bank reports.