Changes for JJ journals dated 1st January 2014 onwards
Prior to version 4.60, JJ journals were always excluded from the VAT return, even where the journal rows were assigned tax codes. JJ journals are generally system created journals where tax was not applicable. However, where a manual journal was entered this would also be excluded and made it more difficult to manually enter journals which should affect the VAT return.
As of version 4.60, we introduced changes to begin including JJ journals on the VAT return. Since JJ journals had never been included they were never marked as VAT reconciled, and this meant that the VAT return could potentially now include old JJ journals since the date you began using Brightpearl. In order to prevent this, part of the transition to including JJ journals was to mark old JJ journals (dated before 1st January 2014) as reconciled.
I thought JJ journals were always included, does that mean my past VAT returns were wrong?
Most JJ journals are system created and tax is not applicable - they are always assigned the "T9 Not rated" tax code. The filters on the General Ledger report can be used to identify JJ journals with tax codes, this will allow you to identify journals and investigate whether those transactions should have been included in a past VAT return.
What does this mean for reconciled VAT returns?
Reconciled VAT returns are not affected by these changes. However, if you choose to remove a VAT return which was reconciled before these changes of version 4.60 and that VAT return covers dates within 2014 and JJ journals with tax codes (other than T9) exist, then a different result would be given even if no additional activity was recorded. Obtaining a list off JJ journals with tax codes using the filters on the General Ledger report will allow you to identify those journals which will now be included.
How do I identify those JJ journals?
The filters on the General Ledger report allow you to identify journals by type, date range and tax code. Go to Reports > General Ledger and search for JJ journals for your VAT return period and then search by one tax code at a time to identify those JJ journals using a tax code which would cause it to display on your VAT return (i.e. a code which is not T9 Not rated).
How do I make sure those journals are not included?
Using the process above you can identify those journals. Open to edit the journal and change the row tax codes to "T9 Not rated". This will exclude the values from the VAT return.
I don't want JJ journals prior to 1st January 2014 automatically reconciled. Can you undo this?
Yes, if you wish to include JJ journals made prior to 1st January 2014 on your next VAT return we can remove the "reconciled" flag. Please contact our Support team to request this is done.