Who is this guide for?
Accounts Users and Accounts Supervisors
At each quarter end there may be a VAT Fuel Scale Charge to apply to the Output VAT figures.
An income nominal is used to post the VAT fuel scale charge or other private disallowance of VAT. This ensures it is shown in the outputs on the VAT return. From here it is then journalled to the expense nominal for motor expenses or telephone, depending on the disallowance.
If an income nominal does not already exist, one will need to be created.
Add a new income nominal
From the left hand menu, select Nominal Ledgers, Nominals, and then Nominal Header. Select Nominal Header Add.
- Account code: this should be a low number if using numerical numbers, or the next available number. If you currently have NL in front of your nominal numbers, please enter NL in front of the new number chosen.
- Account Description: use something that will describe the account. VAT fuel scale charge, would be an example.
- Country and Currency should be set to the area the accounts are used in.
- Nominal Type: The first box should remain the same, Profit and Loss. The second box should be changed to Income.
- In use: this should remain ticked.
The sub analysis code is displayed.
- Exclude from VAT? – remove the tick from this box
- Nominal Type – leave this as Profit and Loss / Income
- In use – leave this ticked
Post the VAT fuel scale charge
From the Nominal Ledgers area, enter the nominal code of the income nominal to use. Select SAC (Sub Analysis Code), Branch, and Department – these should not be ALL. Select Receipt from the list of posting types, and click Post.
Complete the details of the posting using a zero in the Bank/Cash Amount and the amount of the vat disallowance in the VAT Amount box. Click Post. Tick the ‘VAT Correct’ box and then select Post again. This now shows a charge on the income nominal to cover the expense of having the vat disallowed. This can be left here, but it is recommended to transfer this to the expense nominal where the vat was originally claimed e.g. motor expenses.
Journal the balance to expenses
Staying on the Income nominal as above, select the posting type Nominal Transfer from Account. Click Post. Complete the details of the posting using the vat disallowed in the Total amount box. In the Select Destination area, enter the nominal code for motor expenses and then select accept from the centre of the screen.