Frequently Asked Questions

If you did not turn on VAT during the Set up Interview please do the following:

1. Turning on VAT

• Click on Edit on the top menu bar
• Click on Preferences
• Under the VAT options select yes.
• Click on OK to save the changes

2. To add you VAT number

• Click on Company on the top menu bar
• Click on Company Information
• Under Company Identification, enter in your VAT number
• Click OK to save the changes

N.B For upgraded company files

Please note that if the VAT was set up incorrectly in the older version and the below changes cannot be
applied to the existing VAT set up in 2008 you can create a new company file with take on balances to do the VAT set up. For further assistance please contact support on 0861 726 657.

VAT SET UP

1. Editing VAT supplier

• Click on Suppliers on the Top menu bar or on the Home page
• Click on Supplier Centre
• Double click on HMRC VAT and change the supplier name to SARS
• Make sure that “Supplier is a VAT agency” is ticked (on the right had side of the page)
• Click on VAT Agency Information tab
• VAT return must be UK VAT, use the drop down arrow to select.
• Reporting period must be bi-monthly
• Select the correct period ending applicable to your company. (If you are not sure please refer to your VAT 103 form, from SARS or contact SARS directly.)
• QuickBooks sets up a VAT Liability Account for you by default once VAT is turned on. You can use this account to track your VAT on sales and purchases.
• Tick the two options to track VAT on purchases and sales to post to the VAT Liability Account.
• Click OK to save the change

2. Editing the VAT Items

• Click on Lists on the top menu bar
• Click on Item List
• Make all the EC VAT Items inactive as these are not applicable to South Africa. (Right click on the Item and click on Make inactive)

• Double click on Standard Purchases
• Change 17.5% to 14.0%
• The VAT Agency must be SARS, use the drop down arrows to select SARS.
• The VAT return box must be “Domestic purchases, Box 4, box 7”
• Click on OK to save the changes

• Double click on Standard Sales
• Change 17.5% to 14.0%
• The VAT Agency must be SARS, use the drop down arrows to select SARS.
• The VAT return box must be “Domestic sales, Box 1, box 6”
• Click OK to save the changes

• Double click on Zero-rated purchases
• The percent should be 0.0%
• The VAT Agency must be SARS
• The VAT return box must be “Domestic purchases, Box 4, box 7.”
• Click OK to save the changes

• Double click on Zero-rated sales
• The percent should be 0.0%
• The VAT Agency must be SARS
• The VAT return box must be “Domestic sales, Box 1, box 6”
• Click OK to save the changes

Note:

There is no available box in which to enter Capital Purchases and Capital Sales and thus when a capital item is purchased or sold, it will be included in the standard purchases and sales and the user must make a note of the transaction.  Alternatively, if you assign the VAT Code "C" it will be reflected as an uncategorized amount on the VAT 100 report which should be self-explanatory.

3. Editing the VAT code

• Click on VAT on the top menu bar
• Click on VAT code list
• Double click on the S code (Standard)
• Change 17.5% to 14.0%
• Taxable must be ticked
• VAT item for purchases - Select Standard Purchases
• VAT item for sales - Select Standard Sales
• Click Ok to save the changes.
• If desired, make the EC VAT codes inactive e.g. EGS, EGZ and RC. (Right click, make inactive.)     

4. Filing VAT in Pro and Premier
   
   At the end of every bi-month you will need to file VAT in QuickBooks. Print out all the VAT reports, e.g. VAT 100, VAT detail.

• Click on VAT on the top menu bar
• Click on File VAT
• VAT agency must be SARS
• The from and to dates should be set for the current bi-month period
• Click on File VAT Return (You will be prompted to print out the return, this is optional)
• QuickBooks will create a general journal posting to Accounts Payable, for the amount that is owed to SARS. (If you are due a refund, QuickBooks will create a invoice for SARS Receivable, that will need to be paid once SARS has refunded you.)
• You can either select PAY NOW or PAY LATER.
• If you select pay later, you will need to go to suppliers, Pay Bills.
• In your VAT Liability Account, there will be a journal that QuickBooks created, zeroing out the period that has been filed.

5. VAT Adjustment
   
   If a VAT adjustment must be done, do it before VAT is filed to adjust the VAT due or if there is was discrepancy or error in capturing the transactions after VAT as filed.

• Click on Company on the top menu bar
• Click on File VAT
• Click on Adjust VAT return.
• Select SARS as the VAT Agency
• Enter the adjustment date
• Select a VAT Item (If you are paying over more, select Standard Sales. if you are paying over less, select Standard Purchases.)
• Select an adjustment account. (If you are paying more, select an expense account such as Interest expense or a account you create for VAT expenses. If you are paying less, choose an income account such as Other Income.)

N.B:  

If you are adjusting your VAT Liability, do not use the VAT Liability account, as the Adjustment will not post correctly. An Adjustment moves money from one account to another. When you make a VAT adjustment, the VAT Liability account is always one of the accounts, the adjustment account is the other account that is involved in the transaction. For example: John needs to pay an additional R50 because his VAT payment was late. This is money he never collected as VAT, it is an “out-of-pocket” expense. For the VAT adjustment account he chooses an expense account that he created called “Penalties and Fines”. Refer to the below examples.

1. If you are doing the adjustment because you received a credit and you owe less VAT to the Government, choose a income account such as Other Income.
2. If you are doing the adjustment due to a fine, penalty or interest that is due, choose an expense account such as Interest expense or Non-deductible Penalties.
3. If you are adjusting a rounding error, choose either an Income account (for a negative error) or an Expense account (for a positive error). Some users set up a special account for rounding errors or they use the Miscellaneous Expense account.

The only time you should use a VAT Liability account is when you are adjusting unclassified VAT amounts so that they are included on a specific line of your QuickBooks VAT return. In this case, your total liability remains the same; you are just telling QuickBooks on which line to report these amounts.

• Enter the amount that needs to be add or subtracted ( never enter in a negative amount)
• Select either Increase VAT line or Decrease VAT line, so the amount entered has the correct affect on the adjustment.
• Enter a memo, recording the reason for doing the adjustment.
• Click OK to save the changes.

What happens after a VAT adjustment is done:

When you enter a VAT adjustment, QuickBooks automatically creates a General Journal entry to show the adjustment. The next time you pay your VAT, the adjustment is taken into account in the File VAT window – the VAT item you chose in the VAT adjustment tells QuickBooks on which line to include the adjustment.

Once you have created your new QuickBooks company file, please ensure that the below steps are followed to do the VAT set up.

If you did not turn on VAT during the Set up Interview please do the following:

1. Turning on VAT

• Click on File
• Click on Preferences
• Under the VAT options select yes.
• Click on OK to save the changes

2. To add you VAT number

• Click on File
• Click on Company Information
• Under Company Identification, enter in your VAT number
• Click OK to save the changes

N.B FOR UPGRADED COMPANY FILES

Please note that if the VAT was set up incorrectly in the older version and the below changes cannot be applied to the existing VAT set up in 2008 you can create a new company file with take on balances to do the VAT set up. For further assistance please contact support on 0861 726 657.

VAT SET UP

1. Editing VAT supplier

• Under Your Business (On the left hand side of the page)
• Next to Suppliers, click on List
• Double click on HMRC VAT and change the supplier name to SARS
• Make sure that “Supplier is a VAT agency” is ticked (on the right had side of the page)
• Click on VAT Agency Information tab
• VAT return must be UK VAT, use the drop down arrow to select.
• Reporting period must be bi-monthly
• Select the correct period ending applicable to your company. (If you are not sure please refer to your VAT 103 form, from SARS or contact SARS directly.)
• QuickBooks sets up a VAT Liability Account for you by default once VAT is turned on. You can use this account to track your VAT on sales and purchases.
• Tick the two options to track VAT on purchases and sales to post to the VAT Liability Account.
• Click OK to save the changes

2. Editing the VAT Items

• Click on Company on the top menu bar
• Click on Lists
• Click on Item List
• Make all the EC VAT Items inactive as these are not applicable to South Africa. (Right click on the Item and click on Make inactive

• Double click on Standard Purchases
• Change 17.5% to 14.0%
• The VAT Agency must be SARS, use the drop down arrows to select SARS.
• The VAT return box must be “Domestic purchases, Box 4, box 7”
• Click on OK to save the changes

• Double click on Standard Sales
• Change 17.5% to 14.0%
• The VAT Agency must be SARS, use the drop down arrows to select SARS.
• The VAT return box must be “Domestic sales, Box 1, box 6”
• Click OK to save the changes

• Double click on Zero-rated purchases
• The percent should be 0.0%
• The VAT Agency must be SARS
• The VAT return box must be “Domestic purchases, Box 4, box 7.”
• Click OK to save the changes

• Double click on Zero-rated sales
• The percent should be 0.0%
• The VAT Agency must be SARS
• The VAT return box must be “Domestic sales, Box 1, box 6”
• Click OK to save the changes

Note:

There is no available box in which to enter Capital Purchases and Capital Sales and thus when a capital item is purchased or sold, it will be included in the standard purchases and sales and the user must make a note of the transaction. Alternatively, if you assign the VAT Code "C" it will be reflected as an uncategorized amount on the VAT 100 report which should be self-explanatory.

3. Editing the VAT code

• Click on Company on the top menu bar
• Click on Lists
• Click on VAT code list
• Double click on the S code (Standard)
• Change 17.5% to 14.0%
• Taxable must be ticked
• VAT item for purchases - Select Standard Purchases
• VAT item for sales - Select Standard Sales
• Click Ok to save the changes
• If desired, make the EC VAT codes inactive e.g. EGS, EGZ and RC. (Right click, make inactive.)

4. Filing VAT in Simple Start
   
   At the end of every bi-month you will need to file VAT in QuickBooks. Print out all the VAT reports, e.g.  VAT 100, VAT detail.

• Click on Company on the top menu bar
• Click on File VAT
• VAT agency must be SARS
• The from and to dates should be set for the current bi-month period
• Click on File VAT Return (You will be prompted to print out the return, this is optional)
• QuickBooks will create a cheque for you, for the amount that is owed to SARS. (If you are due a refund, QuickBooks will create a invoice for SARS Receivable, that will need to be paid once SARS has refunded you.)
• In your VAT Liability Account, there will be a journal that QuickBooks created, zeroing out the period that has been filed.

5. VAT Adjustment
   
   If a VAT adjustment must be done, do it before VAT is filed to adjust the VAT due or if there is was discrepancy or error in capturing the transactions after VAT as filed.

• Click on Company on the top menu bar
• Click on File VAT
• Click on Adjust VAT return.
• Select SARS as the VAT Agency
• Enter the adjustment date
• Select a VAT Item (If you are paying over more, select Standard Sales. if you are paying over less, select Standard Purchases.)
• Select an adjustment account. (If you are paying more, select an expense account such as Interest expense or a account you create for VAT expenses. If you are paying less, choose an income account such as Other Income.)

N.B. :

If you are adjusting your VAT Liability, do not use the VAT Liability account, as the Adjustment will not post correctly. An Adjustment moves money from one account to another. When you make a VAT adjustment, the VAT Liability account is always one of the accounts, the adjustment account is the other account that is involved in the transaction. For example: John needs to pay an additional R50 because his VAT payment was late. This is money he never collected as VAT, it is an “out-of-pocket” expense. For the VAT adjustment account he chooses an expense account that he created called “Penalties and Fines”. Refer to the below examples:

1. If you are doing the adjustment because you received a credit and you owe less VAT to the Government, choose a income account such as Other Income.
2. If you are doing the adjustment due to a fine, penalty or interest that is due, choose an expense account such as Interest expense or Non-deductible Penalties.
3. If you are adjusting a rounding error, choose either an Income account (for a negative error) or an Expense account (for a positive error). Some users set up a special account for rounding errors or they use the Miscellaneous Expense account.

The only time you should use a VAT Liability account is when you are adjusting unclassified VAT amounts so that they are included on a specific line of your QuickBooks VAT return. In this case, your total liability remains the same; you are just telling QuickBooks on which line to report these amounts.

• Enter the amount that needs to be add or subtracted ( never enter in a negative amount)
• Select either Increase VAT line or Decrease VAT line, so the amount entered has the correct affect on the adjustment.
• Enter a memo, recording the reason for doing the adjustment.
• Click OK to save the changes.

What happens after a VAT adjustment is done:

When you enter a VAT adjustment, QuickBooks automatically creates a General Journal entry to show the adjustment. The next time you pay your VAT, the adjustment is taken into account in the File VAT window – the VAT item you chose in the VAT adjustment tells QuickBooks on which line to include the adjustment.

Each PC running on the network, using Quickbooks requires their own License Key, which can be purchased by contacting our sales department on 0861 726 657.

The QuickBooks Database Server Manager has to be installed on the PC that will host the company files. This is the third option on the installation CD, if Quickbooks is going to be used on the main PC, select the second install option.

1. Once installed do the following on the main PC to Host the Database server manager

• Go to Start
• All Programs
• QuickBooks
• QB database server manger
• Go to Add folder, browse for the drive where the files are located (e.g. C:\)
• Then click on SCAN so it searches for the QBW files
• Once the scan has completed, go into My Computer
• Share the C drive for all users who are going to access QuickBooks, they must have full power/admin user rights.

2. On the Main PC (server), Open your company file in Quickbooks and do the following:

• Open company file, log in with Admin user name and password
• Make sure to switch to multi user mode, File, switch to multi user mode
• Make sure that the other Quickbooks users are set up in the user list, under company, set up users.
• On each PC running Quickbooks, go to File, Utilities, and select host multi user access.

If you receive a error when opening the company file via a mapped drive (Error -6000, -83) then you will need to do the following:

3. On the work stations open QuickBooks:

The company is accessed via the UNC format and NOT a mapped drive.

• Go to file
• Open company
• Go to my network places on the left of the screen
• Find the PC on the network where the company files are located and double click on the company file to open it.
• You will be prompted for the username and password, which is the user accessing the file.
• Repeat this for all other workstations running Quickbooks.
• Check the bank balances on each PC to make sure that all users are on the same company file.