Processing VAT Reimbursements

A VAT reimbursement should be entered using a nominal receipt document. This debits the bank account receiving the reimbursement from HMRC and credit the applicable VAT control nominal.

Nominal Debit Credit
Bank £5,000  
VAT Control   £5,000

A bank transfer should then be processed to re-allocate the reimbursement to any other applicable locations.

This topic assumes that you are familiar with the completion of document input forms. If you need more detailed instructions (such as the selection of dates, periods, and accounts, etc.) please see Completing Document Input Forms.

In the following example, a VAT reimbursement has been received at MAT location for £17,630. Two other locations - AST and DON are also due a share of the reimbursement. The reimbursement needs to be receipted into IRIS Financials and re-apportioned to the applicable locations. A bank transfer then needs to be posted to show the movement of the money from MAT to AST and DON.

Posting a Nominal Receipt for the Reimbursement

  1. Go to Documents, then select Document Input from the menu.
  2. The Document Input dialog is displayed. Select Drill (...) in Document type, then double-select to select MANR- Nominal Receipt document type (where MA represents the location code) from the Select a document type dialog.
  3. The Nominal Receipt input form is displayed in Input form. The Number defaults to the next number in the sequence for the selected document type.
  4. The Date defaults to the current date and the Period defaults to the current accounting periods. These need to be changed to the date the reimbursement was received. If the date needs to be changed, select the down arrow and select the required date from the calendar. If the period needs to be changed, select Drill (...) in Period, then double-select to select the required period from the Select a period dialog.
  5. Select OK to confirm your selections. The Nominal Receipt document input form is displayed populated with the details entered in the Document Input dialog.
  6. Double-select in Bank, then double-select to select the required bank account from the Select account dialog. This should be the account where the reimbursement was received.
  7. Double-select in Paying In/ Direct Bank, then double-select to select BANK-CASH from the Select PAYNORBANK key dialog. This ensures the reimbursement is posted straight to the nominated bank account.
  8. Enter the full amount of the reimbursement in Amount, together with an applicable description in Description.
  9. Enter the details for each location receiving a reimbursement on a separate line. Each location's VAT Control nominal should be used. An example of how this could look is shown in the following graphic:
  10. Once the applicable details have been added, press F5 to post the document. This posts the full reimbursement to the nominated bank account and apportion the income to each specified location (as applicable).

Intracompany documents are generated by the system if multiple locations have been specified. If you have turned off intracompany postings, you 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 location bank accounts. For more information, please see Recording Transfers Between Bank Accounts.