How do I find missing transactions in VAT return that were posted late?

This article covers transactions missing from a VAT return because they were posted after the Tax Period they belong to had already closed. iplicit uses two separate calendars, Financial Periods for accounting and Tax Periods for VAT reporting, and even a one-day difference between them can leave a transaction out of the expected VAT return unless 'Include Late Posting' is enabled.

Why late-posted transactions are missing from a VAT return

iplicit tracks two calendars: Financial Periods, used for posting transactions, and Tax Periods, used for VAT reporting. When these don't align exactly, a transaction can be treated as a late posting for VAT purposes. If 'Include Late Posting' is not enabled, the VAT return excludes these transactions, which can make the return look incomplete.

How to include late-posted transactions in a VAT return

1. Go to 'Environment Defaults'
2. Scroll to the 'Tax & VAT' section
3. Tick 'Include Late Posting'
4. Select 'Save'.

Return to the VAT return and select 'Estimate' again. It now includes any transactions that previously fell outside the aligned periods.

Example: a late-posted transaction on a VAT return

A transaction dated 28 September is posted late, for example on 5 October, against the October accounting period. Because the transaction date falls within the September Tax Period but hasn't yet been included in a previous VAT return, it needs to appear on the September VAT return, not the October one.

Without 'Include Late Posting' enabled, the September VAT return ignores this transaction because it was posted in the October period, making the return look incomplete. Once 'Include Late Posting' is enabled and the VAT return is re-estimated, the transaction correctly appears on the September VAT return.

What 'Include Late Posting' does and doesn't change

This setting affects VAT reporting only. It does not change the Financial Period a transaction is posted to, it simply ensures the VAT return captures all relevant items. It's particularly useful if your organisation often receives invoices after month-end, as it ensures those invoices are still included in the correct VAT return.

If a transaction still doesn't appear on the VAT return

Check the following:

• The transaction is posted, not left as a draft, since drafts are ignored
• The Tax Code on the transaction is valid and linked to the correct Tax Group
• The transaction hasn't already been included in a previous VAT return
• The VAT return is still in Draft, and 'Estimate' has been re-run since the change.