Cancelling or Editing a Document in a Closed VAT Period

Some Of the nominals and ledgers used in this topic may be different to those in your chart of accounts.

When the VAT return process has been completed, the VAT period (also known as a VAT account) is allocated and closed.

It is important not to re-open a VAT period and amend any postings that have already been included in a VAT return that has been submitted to HMRC. Do not edit or cancel a document for a closed VAT period as doing so may cause a discrepancy between your accounts and the information you have submitted to HMRC.

If you need to cancel or edit a document that is in a closed VAT period, you need to manually reverse it in the next open VAT period and then re-enter it with the correct details. This ensures the correct information is included in future VAT returns.

This topic demonstrate the recommended method of amending or reversing a document that is allocated and already been included in a previous VAT claim to HMRC.

Example: Document PINV 2 has been entered with Tax Type S20 in error. The correct Tax Type is Z. The document has already been included in a VAT return and the VAT period is closed. This is indicated by the VAT line being allocated. To correct the incorrect information, the document must be corrected in the next open VAT period which is 2022Q04.

Cancelling or editing a document in a closed VAT period consists of the following:

Identifying a Document with an Allocated VAT Line

Checking the VAT Period Status

Editing a Document that has been Included in a VAT Return

Cancelling a Document that has been Included in a VAT Return

Identifying a Document with an Allocated VAT Line

  1. Go to Enquiries, then select Document Enquiry from the menu.
  2. The Document Enquiry Criteria is displayed. Enter the applicable criteria to search for the document, then select OK. For more information, please see Selecting Criteria for Enquiries.

  3. Select Periods, then set the Period Range to All.

  4. The Document Enquiry dialog is displayed. Check to see if the VAT line (nominal code 9521 or 9522) for the document has a Status of Paid.

    If you searched for more than one document, select Expand (+) adjacent for the Document Type for which you want to check the VAT line. If you are unable to see the Status, use the scroll bar at the bottom of the window or right-select on the Detail Lines header bar, then select Status from the pop-up menu.

    Allocated VAT lines usually indicate that a document has been included in a VAT return and the VAT period has been closed. Before cancelling or editing a document with allocated VAT, it is recommended that you check if the VAT account is closed. Make a note of the VAT period code in the Account column on the Document Enquiry. For example, 2022Q2, as shown in the previous graphic. For more information, please see Checking the VAT Period Status.

Checking the VAT Period Status

  1. Go to Maintenance, then select Accounts from the menu.
  2. Double-select to select VAT - VAT Accounts from the Select a ledger dialog.
  3. The Account Maintenance - VAT (VAT Accounts) window is displayed. Select the VAT Account to which the VAT line on the document you want to cancel or edit is allocated to, e.g. 2022Q2, from the left-hand panel, then select the Tax tab.
  4. Check the Status displayed.

    If the VAT period is set to Closed, you are unable to cancel or edit the document using the edit or cancel functions. You need to reverse the document you want to cancel or edit. For more information, please see Edit a Document that has been Included in a VAT Return or Cancelling a Document that has been Included in a VAT Return.

Editing a Document that has been Included in a VAT Return

If you need to make an amendment to a document that has been included in a VAT return, the recommended process to follow is to copy and reverse the document into the next open VAT period, then re-enter the document again in the next open VAT period. The net effect of posting two reversed documents ensures the correct information is showing in the next open VAT period to include in the next HMRC VAT submission. It also allows any intracompany posted documents to be corrected.

This section assumes you are familiar with selecting criteria for and completing document input forms. For more information, please see Completing Document Input Forms.

  1. On the Document Enquiry window, select the document with allocated VAT that you want to amend, then select COPY.
  2. The Document Input dialog is displayed. Select Reverse Values from the Posting Options, then select Drill (...) in Document type. The Select a document type dialog is displayed. Double-select to select JRNL - Journal.
  3. The Date and Period need to be the current date and period, which default to the current date, i.e., today's date and the relevant period.
  4. Select OK to confirm your selections.
  5. The PSFJournal document input form is displayed.

  6. Double-select in the Account column on the VAT Line (typically next to the nominal ending in 5305), then double-select to select the next available open VAT period/quarter from the Select VAT account dialog.

    Do not amend any other information other than the VAT account on the reversed journal document. After posting the reversed document with the updated VAT account, you can create another copy of the document in which you can edit the required information.

  7. Press F5 or select POST to post the document.

  8. On the Document Enquiry window, select the original document with allocated VAT that you want to amend, e.g. PINV 2, then select COPY.

  9. The Document Input dialog is displayed. Select Reverse Values from the Posting Options, then select Drill (...) in Document type. The Select a document type dialog is displayed. Double-select to select JRNL - Journal.

  10. The Date and Period need to be the current date and period, which default to the current date, i.e., today's date and the relevant period.
  11. Select OK to confirm your selections.

  12. The PSFJournal document input form is displayed.
  13. Amend the details you want edit for the document, for example, the values.

  14. Double-select in the Account column on the VAT Line (typically next to the nominal ending in 5305), then double-select to select the next open VAT period/quarter from the Select VAT account dialog.

  15. When you have amended the VAT period/quarter, press F5 or select POST to post a copy of the document.

Cancelling a Document that has been Included in a VAT Return

If you need to cancel a document that has been included in a VAT return, the recommended process to follow is to copy and reverse the document into the next open VAT period. This ensures the cancelled document is included in the next VAT submission, which allows for any VAT to be repaid or reclaimed. It also allows any intracompany posted documents to also be corrected.

  1. This section assumes you are familiar with selecting criteria for and completing document input forms. For more information, please see Completing Document Input Forms.

  2. On the Document Enquiry window, select the document with allocated VAT that you want to cancel, then select COPY.
  3. The Document Input dialog is displayed. Select Reverse Values from the Posting Options, then select Drill (...) in Document type. The Select a document type dialog is displayed. Double-select to select JRNL - Journal.

  4. The Date and Period need to be the current date and period, which default to the current date, i.e., today's date and the relevant period.
  5. Select OK to confirm your selections.

  6. The PSFJournal document input form is displayed.

  7. Double-select in the Account column on the VAT Line (typically next to the nominal ending in 5305), then double-select to select the next open VAT period/quarter.

  8. Press F5 or select POST to post the cancelled document.