User Question:

The debit 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 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

1. Open the Trial Balance for the relevant Input VAT account and identify transactions with a remaining debit balance.
2. For any discrepancy on the Input VAT account, always verify whether the corresponding Tax Invoice Received has been processed correctly.
3. Open the relevant source document, such as an Invoice Received or Employee Expense Report.
4. Check whether the corresponding Tax Invoice Received is correctly specified and posted.
5. Identify the transaction for which the Tax Invoice Received is missing or processed incorrectly.

Resolution

1. 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.

     4. Regenerate the relevant Input VAT report and verify that the remaining balance has been cleared.

Related Materials

4.2.4. Tax Invoices Received

6.3.3. Employee Expense Reports

7.7. Accounting: Reports

Product / Configuration

FirstBit ERP/FirstBit Accounting/FirstBit Contracting

Functional Area/Firstbit Software Section

Accounting

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