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 Liability nominal.

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

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

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.

  1. Go to Documents, then select Document Input from the menu.
  2. The Document Input dialog is displayed. Select ... in Document type, then double-select to select REC - Receipt.
  3. Select ... in Input Form, then double-select to select Nominal Receipt.
  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. Currency displays your organisations default currency. Double-select to change the transaction to a different currency if needed.
  7. Entity defaults to your default Entity. Double-select this and select a different Entity if needed.
  8. Paying In\Bank Direct defaults to B - Bank Receipt Direct. You do not need to change this unless the receipt is received by cheque.
  9. Bank defaults to your current bank account. Double-select to select a different account if needed.
  10. Enter the total value of the funds received in Total Receipt Amount.
  11. Enter a reference for the receipt in Receipt Ref.
  12. In Nominal, enter your VAT Liability nominal (typically ending in 5320).
  13. Leave Account and Additional Information as blank, then enter the Gross Value.
  14. Enter O in VAT Code for Outside the Scope.
  15. Leave VAT Amount blank, then tab to Description (Net Value is automatically calculated) and enter a description.

  16. Add any additional lines if the receipt covers other Entities, then select POST or press F5.