Processing VAT Reimbursements

A VAT reimbursement should be entered using a nominal receipt document. This will debit the bank account receiving the reimbursement from HMRC and credit the applicable VAT control nominal. A bank transfer should then be processed to re-allocate the reimbursement to any other applicable locations within the Trust.

This topic details the recommended process of posting a VAT reimbursement in PS Accounting.

Posting a nominal receipt to account for the reimbursement

This topic uses the following example:

A VAT reimbursement has been received at CEN location for £17,630. Two other locations - PRI and SCH are also due a share of the reimbursement. The reimbursement needs to be receipted into PS Accounting and re-apportioned to the applicable locations. A bank transfer also needs to be posted to show the movement of the money from CEN to PRI and SCH.

  1. In IRIS Financials go to Options > Document Input and select the applicable Nominal Receipt document type.
  2. Enter the applicable Document Date and Document Period. This should be the date the reimbursement was received. Click the OK button.

  3. When the Nominal Receipt document input form displays, double-click in the Bank field and select the applicable bank account.

  4. Double-click in the Paying In/ Direct Bank field and select BANK-CASH. This will post the reimbursement straight to the nominated bank account.
  5. Enter the full amount of the reimbursement in the Amount field.

  6. Enter an applicable description in the Description field.

  7. Enter the details for each location receiving a reimbursement on a separate line. Each location's 9520 - VAT Control nominal should be used.

  8. Press F5 to post the document.

This will post the reimbursement to the nominated bank account and apportion the income to each specified location if applicable.

Intracompany documents will be generated by the system if multiple locations have been specified. If you have turned off intracompany posting, you will need to post these manually.

To complete the process you may need to transfer the reimbursement from the receiving bank account to any other applicable locations.

Posting a bank transfer to show the transfer of the reimbursement to applicable locations

The following section assumes the actual reimbursement has been transferred via your own online banking platform.

To do this:

  1. In IRIS Financials go to Options > Document Input and select the Bank input form. Please note, you will need to select the Bank document type for the location that is transferring the money.

    The users at the receiving location will need access to the applicable Bank document type used in order to see the posting. See Assign document security (v2, v4, v6). In our example all users that need to see the bank transfer will need access to the CEBK document type.

  2. On the Input Form drop-down list, select Bank Transfer.

  3. Enter the applicable Document Date and Document Period and click the OK button.

  4. Double-click in the Bank Account From field and select the applicable bank account where the full initial reimbursement was recorded.

  5. Double-click in the Location to field and select a location to transfer a value to. In the Bank Account to field double-click to select the location's bank account that will receive their portion of the reimbursement.

  6. In the Bank Transfer Value field, enter the value that is being transferred. In the Description field, enter an applicable description that identifies what is being transferred.

  7. Press F5 to post the document.

    This will generate an intracompany posting in order to balance each locations trial balance.

  8. Repeat this process for any other applicable locations.