How to do a Direct VAT Posting in SFM

How to do a Direct VAT Posting in SFM

SFM let's you insert an entry directly in the VAT Control Account.  There are 2 different methods to do so.


The Nominal Method

Nominal Process

- Go on Current Year > Nominal > Vat Table.
- Click on Posting Button (Green button on Sidebar).
- Here you can post a Journal Entry against the Bank/Cash Account.
Only one line is needed, the Contra Entry will be against the VAT Control automatically.


Nominal Result using the Nominal Method

Nominal Entry
Cr Bank/Cash Account
Dr Vat Control Account


The Supplier Method

Supplier Process

- Choose the Supplier who you will pay the VAT directly to (this could be the courier).
- Post an Invoice for that particular supplier.
- Choose the VAT Control Account for the transaction in the 'A/C Code' field.
- Insert the full VAT Amount in the 'Amount' field.



- Upon payment for the Supplier, a standard Purchases Payment needs to be processed.


Nominal Result using the Supplier Method




Both methods achieve the same result when affecting Nominal & Vat Returns, however the Supplier method also achieves an entry in the Supplier which is recommended for historical purposes.

    • Related Articles

    • How do I reverse an entry after posting it?

      Once users confirm an entry into SFM, they cannot modify any elements of the data. The only option available is to reverse the full transaction(s) and re post the entry with the right values. The system provides for the reversal of entries as ...

    • Error: "Last Vat Return was not completed successfully" when posting a Purchases Invoice

      Problem Error: "Last Vat Return was not completed successfully" when posting a Purchases Invoice Environment SFM Solution Reverse the VAT Return from Archive and re-process the VAT Return on Current Year once again. Follow the guide How do I run a ...

    • How to Process a VAT Return

      Accessing the VAT Table The option to run a VAT return is available from Current Year Menu > Nominal > VAT Table, or from the VAT Shortcut Button. If the VAT Return date is within your previous financial year, please run the return from Previous Year ...

    • Cannot archive VAT Return due to unprocessed transactions in SFM gateway

      Problem Archiving VAT return and not allowing user due to unprocessed transactions in SFM gateway.  The SFM Gateway has transactions that are pending import. Environment SFM Gateway in SFM. Solution Open SFM. Go to Current Year > Utilities > Import ...

    • Tracing a Journal entry from SFM to SIMS interface

      This article provides a step-by-step guide on how to trace a journal entry from SFM back to the source of the posting. In the below example, we have identified a journal entry through the Nominal Audit Trial listed as JR 000040 with values of €150 ...