Difference in Dr and Cr side in VAT GL accounts
User Question:
The debit turnover is AED 12439.45,but the vat reclaim credit is AED 12197.03, Leaving AED 242.42 unreclaimed. Which transaction caused this and credit turnovers on the Input VAT account do not match, and part of the VAT remains unreclaimed. How can I identify which transaction is causing the difference?
Problem / Symptom
The discrepancy in the amounts in the debit and credit columns.
Conditions
The Invoice received is posted.
The payment was processed using a Cheque Issued and Bank Payment.
The payment has been posted.
The Invoice received remains outstanding after the payment is posted.
Root Cause
Employee expense reports are present, but not all items have a tax invoice received, so Cr column is empty:
Diagnostics
debit and credit turnovers on the Input VAT account do not match, resulting in a remaining debit balance and unreclaimed VAT amount.
Conditions
- Transactions with Input VAT have been posted.
- The Input VAT account has a remaining debit balance.
- Debit and credit turnovers for the Input VAT account do not match.
- The discrepancy can be traced to one or more source documents.
Root Cause
The corresponding Tax Invoice Received is missing or has not been processed correctly for one or more transactions. As a result, the Input VAT is not fully reclaimed, leaving a balance on the Input VAT account.
Diagnostics
- Open the Trial Balance for the relevant Input VAT account and identify transactions with a remaining debit balance.
- For any discrepancy on the Input VAT account, always verify whether the corresponding Tax Invoice Received has been processed correctly.
- Open the relevant source document, such as an Invoice Received or Employee Expense Report
Open the Bank Payment related to the supplier payment.
Identify the corresponding Cheque Issued.
Open the Cheque Issued.
Go to the Payment Details tab.
Check whether the Advance option is selected- .
- Check whether the corresponding Tax Invoice received
- Received is specified in the Document field
- correctly specified and posted. If the Advance option is selected and the Document field is not filled in, the payment has been processed as an advance rather than allocated to the specific Invoice received
- Identify the transaction for which the Tax Invoice Received is missing or processed incorrectly.
Resolution
...
Unpost the Bank Payment.
...
Unpost the corresponding Cheque Issued.
...
Clear the Advance option in the Cheque Issued.
- Open the source document causing the discrepancy.
2. Specify the corresponding Tax Invoice
...
Received in the
...
Tax Invoice field.
3. Repost the
...
document if required.
...
Repost the Bank Payment.
...
Check the supplier balance. The supplier invoice should now be displayed as paid.
4. Regenerate the relevant Input VAT report and verify that the remaining balance has been cleared.
Related Materials
64.2.4. 2.1.2. Creating a Cheque Issued. The Payment Details tabTax Invoices Received
6.3.3. Employee Expense Reports
Product / Configuration
FirstBit ERP/FirstBit Accounting/FirstBit Contracting
Functional Area/Firstbit Software Section
MoneyAccounting
Thank you for being FirstBit customer!
Alternative User Questions / Keywords
#paid_supplier_invoice_is_still_outstanding #supplier_invoice_remains_outstanding_after_payment #invoice_is_paid_but_still_shown_in_balance #paid_invoice_is_still_showing_in_supplier_balance #payment_does_not_settle_supplier_invoice #supplier_payment_does_not_close_invoice #bank_payment_does_not_settle_invoice #cheque_issued_as_advance_payment#vat_reclaim_amount_does_not_match_debit_turnover, #vat_reclaim_is_less_than_debit_turnover, #vat_reclaim_difference, #vat_reclaim_difference_in_account, #vat_reclaim_amount_difference, #unreclaimed_vat_amount, #vat_amount_remains_unreclaimed, #vat_reclaim_is_not_fully_processed, #vat_reclaim_is_not_fully_claimed, #difference_between_debit_turnover_and_vat_reclaim, #vat_reclaim_difference_in_gl_account, #how_to_find_vat_reclaim_difference, #how_to_identify_unreclaimed_vat, #which_transaction_caused_vat_difference, #find_transaction_causing_vat_difference, #vat_reclaim_transaction_difference, #vat_reclaim_amount_is_different_from_debit_turnover, #debit_turnover_does_not_match_vat_reclaim, #vat_reclaim_does_not_match_account_balance, #vat_reclaim_is_not_fully_reclaimed, #why_is_vat_not_reclaimed, #why_is_vat_reclaim_amount_different