Overview
The Purchase Tax Missing bookkeeping data check feature identifies transactions (where the organisation is marked as registered for sales tax) that have been posted to an Expense , Fixed Asset Additions, or Prepayments account code but have been given an ‘Outside the scope’ or ‘No VAT’ purchase tax code.
Transactions checked include:
It is generally expected that, where the organisation is registered for sales tax, then an appropriate purchase tax code should be used for most expenditure.
Of course, there are many instances where transactions have been legitimately coded to an ‘Outside the scope’ / ‘No VAT’ tax code, (e.g. such as wages related expenditure, tax payments etc in the United Kingdom (in some circumstances). Therefore, the following additional default settings are applied.
Ignored Account Codes
Where any of the following expense account codes are detected in the organisation’s chart of accounts, the account is automatically ignored in settings in order to avoid false positive issues being raised:
You can add or remove account codes from the list of ignored expense codes via the settings page for the organisation.
Consider Additional Account Codes
Balance Sheet account codes are ignored, apart from the following account codes which are automatically added to be considered by default (where found in the organisation’s chart of account):
You can add or remove account codes from the list of considered balance sheet account codes via the settings page for the organisation.
Details provided for each transaction include:
Reviewing the transaction & changing the transaction’s tax code
If you decide that the tax code currently given to the transaction in the bookkeeping software is inappropriate, you can quickly and easily change it using the ‘View/Edit’ actions button, which will open the transaction in a new browser tab.
Dismiss Item
If you decide that a particular transaction already has the correct tax code used, then you can click the “Dismiss” button to hide the item and prevent that specific transaction from appearing in the list again.
Show Dismissed Items
You can quickly include all previously dismissed transactions, by enabling the “Show dismissed items” toggle.
This allows you to recheck and edit any tax codes that have previously been dismissed in error.
Bulk Process Options
The following bulk actions can be taken by using the check boxes and Bulk Process Options drop down menu:
