Processing a VAT Return

This topic assumes that:

  • you have read Preparing for a VAT Return

  • the VAT period has been checked against the VAT 126 or VAT 100 report

  • you are happy to proceed with posting the VAT return

A VAT Transfer document transfers the balances from the VAT input and VAT output nominals into the VAT control account. This balances the applicable VAT account to zero so that it can be closed and submitted to HMRC.

If you are familiar with PS Financials Version 6, the process of posting VAT Transfer documents remains the same. In IRIS Financials, you can access the VAT Transfer documents directly from a VAT period.

  1. Select Maintenance, then select Accounts from the menu.
    maintenance-accounts.png
  2. Double-select to select the VAT ledger from the Select a ledger dialog.
    select_a_ledger_vat.png
  3. The Account Maintenance window is displayed, labelled according to the selected ledger. Select the applicable VAT period, then select the Tax tab.
  4. Select Close Tax Account. A Change Tax Account Status message is displayed. Select OK.
  5. The Close Tax Account dialog is displayed. If there are no balances on any of the VAT Input or Output nominals, select Next and go to step 11.
  6. If there is a balance on nominals listed, a VAT Transfer document needs to be posted before the account can be closed. Select the here link (as shown in the following graphic).
  7. The Document Input dialog is displayed. You need to select the applicable VAT transfer input form by selecting Drill (...) in Document type, then double-select the applicable VAT transfer document. For example, the previous graphic shows a balance on AST9521, so a transfer document needs to be created for the AS location - ASVT.
  8. Select the applicable date and period, which corresponds with the end of the VAT period in Date and Period, then select OK. The VAT Transfer input form is displayed.
  9. If the Select an Account dialog is displayed and you do not need to enter an adjustment, close the dialog. If you need to enter an adjustment, such as partial exemption, enter the value and applicable cost centre used in Adjustment Account and Adjustment Value. For more information about VAT adjustments, please see Entering Manual VAT Adjustments on the VAT Transfer Document. Any partial-exemption calculation needs to be calculated separately before entering the information in the VAT Transfer document.
  10. Press F5 to post the document and return to the Close Tax Account dialog. To refresh the summary page, select Back to return to the Select Tax Account dialog, then select Next to return to the Close Tax Account Summary dialog. If there are other VAT nominals which have balances, these have a red border around them. You need to post a VAT Transfer document for the applicable location. Repeat these steps as required.
  11. When all VAT periods no longer have a balance against them, select Next. The Complete page is displayed indicating the the VAT period is now closed and the VAT return is complete.
  12. Select Start Again to close the VAT return for another VAT period, or close the dialog.