Reconcile VAT returns

This screen replaces the VAT differences spreadsheet. For each reporting period it shows three states, so a difference that appears after filing does not get lost between the totals.

What you see

Open the client’s report area and choose VAT reconciliation. Each row is one reporting period, monthly or every two months depending on the client:

• At filing: what the books showed when the return was closed.
• Filed: what was sent to the Tax Authority.
• Books today: what the books calculate now.
• Difference: filed minus books today. A positive difference means more was filed as payable than the books show today.

The top of the screen shows totals for the year and the number of periods with open differences. Click a period to open its detail. Show details lists every figure of the return: taxable sales, exempt or zero-rated sales, output VAT, other input VAT, equipment input VAT, and the payable or refund.

When “at filing” is saved

• A VAT return on the report board is saved automatically the first time it is sent for client approval, approved, or filed. If it goes back to work before it was filed, the snapshot is dropped and saved again on the next send.
• For a period that is not on the report board: open the period and choose Close return. Reopen undoes a close made here.
• Returns sent before this screen existed show the figures saved on the report board, without the documents behind them.

Documents recorded after the close do not change the snapshot. They show up under Books today.

Enter what was filed

1. Open the period and choose Update filed figures.
2. In Quick mode, choose Payable or Refund and enter the amount.
3. In Detailed mode, enter every figure of the return. The payable or refund is calculated from them.
4. Copy from filing time fills in the figures saved at the close. Check them against what was sent, then save.

A return sent through the Tax Authority API is read automatically and cannot be edited by hand.

Statuses

• Filing not entered: what was sent is not known yet.
• Matched: what was filed equals the books today.
• Difference: the books changed since filing, or a different amount was filed.
• Closed and checked: marked with Mark closed and checked. The mark holds while the difference is unchanged. A document recorded after the check puts the period back up for review.

Anyone who can see the client’s books can view this screen. Changes need posting permission for the books.

Check what makes up the difference

Click the difference in the period detail, or Check what changed. The What makes up the difference? window lists every document that changed since the return was closed:

• Added after filing: a new document, or an expense posted to the books after the close.
• Deleted or cancelled and Returned to draft: a document that was in the return and no longer counts.
• VAT period changed: a document that moved into or out of this period.
• VAT amount changed, Amount changed, and Classification changed, for example an input that moved from equipment to other.

Each document shows its Effect on difference. Below the table you also see the gap between the filing-time figures and what was filed, such as rounding to whole shekels or a manual correction. Together they add up to the difference.

Returns sent before this screen existed did not save their documents, so only the amount by which the books changed is shown.

Handle a difference

Under Handling the difference, choose a Handling status: Not handled, Included in the next period, Amended return needed, Difference approved, or Handled manually. Add a free note if needed and click Save handling.

A period with a handling status shows Difference explained. Like the “closed and checked” mark, it holds while the difference is unchanged. A further change in the books puts the period back to Difference.

Save inputs for a later period

When a return comes out as a refund and you do not want to claim all input VAT now, you can save part of it for a later period.

1. Open the period and choose Save inputs for a later period.
2. Under Automatic calculation, choose Reach a zero return or Wanted refund and enter an amount. The screen shows how much input VAT needs saving.
3. Select suggested documents ticks documents whose VAT comes close to the amount without passing it. The suggestion only ticks; nothing is saved until you confirm.
4. Tick or untick documents yourself, search by supplier or invoice number, and choose To period.
5. Check After saving and confirm.

Only the VAT period changes. The invoice date and the journal entry stay, and PCN874 lists the document in the period that actually claims it. A document is in one reporting period only:

• You cannot save to a period that is already closed or has filed figures.
• You cannot move an input that a closed return already claimed. A supplier invoice that reached a closed period after the close was not claimed, so it can move.
• Return to original period undoes a save while the original period is open.

Saved input VAT

The Saved input VAT tab lists every saved input of the client and their total. Each shows the original period, supplier, invoice number, date, age, VAT amount, who saved it and when, and the period it is for.

• Waiting to be claimed: the target period has not come yet.
• In the current return: the target period has ended and its return is not closed yet.
• Deferred again: the input was saved more than once.
• Claimed: the target period closed with the input in its return.
• Needs review: the document was cancelled, returned to draft or moved to another period, or six months have passed since the invoice date.

Input VAT can be claimed up to six months after the invoice date. Inputs four months old are marked yellow, five months and older red. When saved inputs from earlier periods are waiting, or an input is getting old, an alert appears at the top of the screen with Show inputs.

Control across all clients

Reports → VAT reconciliation shows every VAT return of a report board period: client, period, at filing, filed, books today, difference, saved inputs, status, Primary assignee and Deputy assignee. Team members see only the clients assigned to them. The info icon next to the headings of the amount columns explains each column when you hover over it.

In the filter row, choose the Report board period, search by client name or tax ID, and filter by Status (including Not calculated yet), Saved inputs (With saved inputs or Without saved inputs), Primary assignee and Deputy assignee. The assignee filters also offer Unassigned. In VAT difference over enter an amount in shekels, and only returns where the difference between what was filed and the books, to pay or to refund, is larger than it are shown. While any filter is applied, Clear filters appears and brings every return back. Click a column heading to sort by it, and click a row to open that client’s period. The list remembers your search, filters, sorting and column order, and you can save views of your own. See Arranging lists and saved views.

You can change the primary and deputy assignee right in the table. To assign several returns at once, tick them in the boxes at the start of the row and choose Set primary assignee or Set deputy assignee. Clear selection clears the ticks. Export to Excel downloads an Excel file with the rows shown now, with the search and filters. Before anything changes, a window lists every row with its assignee now and after, and nothing changes until you choose Assign. If some rows could not be updated, the message names them.

So that every view does not recalculate every client’s books, Books today shows the last calculation, and its time appears next to Recalculate. The calculation updates when filed figures are entered, a return is closed or checked, or inputs are saved. Recalculate recalculates every row of the period.