How To: Use the Advanced Processing Method for VAT Returns

Warning

Advanced VAT Processing is intended for experienced users only.
Before using this method, ensure you fully understand how VAT Returns are processed in Khaos Control. Once a VAT Return has been committed, it cannot be amended.
If you are unsure which transactions should be included, seek advice from your accountant before proceeding.

Introduction

The Advanced Processing method gives you complete control over which transactions are included in a VAT Return.
Unlike the standard VAT Return process, Advanced Processing allows you to:
  • Include transactions by date range.
  • Include or exclude individual transactions.
  • Review transactions before committing the return.
  • View previously committed VAT Returns.
This method is particularly useful if you need to prepare a VAT Return that excludes specific transactions or includes adjustments that fall outside a standard reporting period.
Note: When Advanced Processing is selected, Khaos Control displays all transactions that have not yet been reported. Transactions that have previously been included or excluded may appear with a purple background.

Using Advanced Processing

  1. Start the VAT Return process as described in How To: Process a VAT Return.
  2. Select the Advanced radio button.
  3. Make sure Show All (or only non-excluded) is ticked.
  4. Click Go to populate the transaction grid.

Select the Transactions to Include

The easiest way to prepare the return is to exclude all transactions first and then include only those relevant to the VAT period.
Note: If you have already processed monthly or quarterly VAT Returns in Khaos Control, some transactions may already be excluded. Excluded transactions are displayed with a purple background.

Exclude All Transactions

  1. Press Ctrl + A to select all transactions.
  2. Right-click and choose:
    Exclude Selected Items

Include Transactions by Date Range

  1. Press Ctrl + A again.
  2. Right-click and select:
    Include By Date
  3. Enter the date range that applies to your VAT Return.
Transactions within the selected date range will be included in the return.
Transactions remaining excluded will:
  • Continue to display with a purple background.
  • Not appear on the VAT Return report.
  • Not be committed when the return is processed.
  • Remain available for future VAT Returns.

Review the VAT Return Totals

  1. Untick Show All.
  2. This hides the excluded transactions and makes it easier to review only the items that will be included in the VAT Return.
  3. Compare the displayed totals with your VAT Return figures.
  4. Click Go to refresh the grid if required.

Complete the VAT Return

Once you are satisfied that the correct transactions have been included:
  1. Continue with the VAT Return process.
  2. Follow the instructions in Processing the VAT Return.
  3. Review the VAT Return carefully before committing it.
Important: Once committed, a VAT Return cannot be changed.

Alternative Selection Method

Instead of using Include By Date, you can manually select transactions and use:
  • Include Selected Items
  • Exclude Selected Items
This can be useful when only a small number of transactions need to be added or removed from the return.

Understanding Transaction Colours

ColourMeaning
Standard grid colourTransaction is included in the VAT Return.
PurpleTransaction is excluded and will not be included in the VAT Return.

Tips

  • Always review the included transactions before committing the return.
  • Use Show All when checking which transactions have been excluded.
  • Use Include By Date to quickly select a standard VAT reporting period.
  • If adjustments are required, consider using Include Selected Items and Exclude Selected Items instead.
  • Compare the VAT Return totals against your VAT records before processing.

Additional Information

The Advanced Processing method is designed for situations where the standard VAT Return process does not provide enough flexibility.
Typical examples include:
  • Late invoices that need to be deferred.
  • Historical corrections.
  • Complex VAT adjustments.
  • Transactions that must be excluded from the current return.
Care should be taken when manually selecting transactions, as excluding or including the wrong entries could affect the accuracy of the VAT Return.



See Also


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