If we are migrating Sales and Purchase invoices into Zumzum Financials, how is this going to effect our first VAT return?
If you are migrating unpaid Sales Invoices and Purchase Invoices to Zumzum Financials to create opening balances for your customers and suppliers, you will have accounted for these invoices in your VAT return in the legacy system at the end of the previous VAT period.
At the end of the first period, you should create a VAT return for the last VAT period/Return in your legacy system – it will only contain transactions for the previously closed period.
As the VAT return is based on a date range you will need to include older transactions, you would select “include previous unreconciled transactions” for older transactions to be included in the current return, e.g. adjustments, credit notes, etc. that are migrated from your legacy accounting system.
As a tactic, once you have your Trial balance reconciled with your legacy accounting system, we would propose completing your previous quarters’ VAT return in your legacy accounting system/HMRC and then run a VAT return in Zumzum Financials, to mark all those “migrated” transactions as reconciled too (even though the VAT return is different).
This is a migration technique which you should keep good documentation and notes.