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The VAT account reconciliation template sits directly on the VAT control account or accounts in the trial balance. It does not ask you to enter anything itself. Instead it checks whichever VAT reconciliation is active for the period, confirms whether the account it is attached to is covered by that reconciliation, and shows whether the account balance agrees with the VAT position that reconciliation has calculated.

Table of contents 

When should I use this template?

Use this account template on any nominal account that holds a VAT control balance (VAT liability or VAT asset) in the trial balance. Rather than reconciling each VAT account manually, attaching this template lets the account pick up its reconciled or unreconciled status automatically from the VAT workings elsewhere in the file.

Before you start

  • Make sure either the VAT closing balance reconciliation or the Summary of VAT returns - BS rec has been added to the period. This template has nothing to check against without one of them present.
  • Make sure exactly one of those two templates is starred. Starring tells Silverfin which one is "live" for the period, and this template always follows the starred one.
  • If neither template is present, this account template will show a warning asking you to add one of them from the marketplace.
  • If both are starred at the same time, this account template (and the two VAT templates themselves) will show a warning asking you to unstar one. Leaving two active VAT workings in the same period creates a conflict.

What this template is for

This is a generalised working paper. It is a display and reconciliation layer, not a place to enter figures, and it holds no inputs of its own. Its only job is to:

  1. Work out which of the two VAT reconciliations is currently active for the period.
  2. Read the list of VAT accounts, and the calculated VAT difference, that the active reconciliation has produced.
  3. Check whether the account this template is attached to is one of the accounts covered by that reconciliation.
  4. Show the result, either reconciled (with a link through to the reconciliation) or unreconciled, with the difference displayed.

Steps

  1. Confirm the active VAT reconciliation. For periods ending on or after 31 March 2021, the template checks which of the VAT closing balance reconciliation and the Summary of VAT returns - BS rec is starred, and uses that one. For periods ending before 31 March 2021, it always uses the Summary of VAT returns - BS rec, reflecting how VAT was tracked in Silverfin at that time.
  2. Check the account is covered. The active reconciliation nominates a range of VAT accounts it applies to. If the account this template sits on is not part of that range, the template shows an information message saying so.
  3. If the account is not covered, go to the active VAT reconciliation and add the account to its selected VAT accounts, or attach a different account template to this account instead. Until this is resolved, the account will show as unreconciled with a difference equal to the full account balance.
  4. If the account is covered, the template links straight through to the active reconciliation and shows the calculated VAT difference as a reconciled or unreconciled indicator.
  5. Review the indicator. A nil difference means the account balance agrees with the VAT position calculated on the linked reconciliation. Any other figure means there is a difference to investigate, so click through to the linked reconciliation to see where it comes from.

What flows through to the rest of the accounts/workflow?

Nothing flows out of this template to anywhere else, because it is a one-way consumer of information. It takes the selected VAT accounts and the calculated VAT difference from whichever VAT reconciliation is active, and uses them to set the reconciled or unreconciled status of the account it sits on. That status feeds into the file's overall reconciliation progress in the same way as any other account reconciliation.

What rolls forward next year?

Nothing rolls forward on this template itself, because it stores no data of its own. Every period it re-checks from scratch which VAT reconciliation is starred, which accounts are selected on it, and what the current period's VAT difference is. Continuity between periods comes from the linked VAT reconciliation instead (for example, its own opening balances and star setting), not from this account template.

Where the data comes from

  • The account balance itself comes from the trial balance, for whichever account this template is attached to.
  • The list of VAT accounts to check against, and the VAT difference to display, both come from whichever of the VAT closing balance reconciliation or the Summary of VAT returns - BS rec is currently starred for the period (or, for periods before 31 March 2021, always from the Summary of VAT returns - BS rec).

Frequently asked questions

What happens if neither VAT reconciliation has been added to the period?

The template shows a warning asking you to add the VAT closing balance reconciliation or the Summary of VAT returns - BS rec from the marketplace. It cannot show a reconciled status without one of them.

What happens if both VAT reconciliations are starred at once?

The template shows a warning telling you to star one template only. Having both starred at the same time means Silverfin cannot tell which one this account template, or the VAT reconciliations' own cross-links, should follow.

Which reconciliation does this template use for older periods?

For any period ending before 31 March 2021, it always uses the Summary of VAT returns - BS rec, regardless of star status. From 31 March 2021 onwards, it follows whichever of the two is starred.

Can I use this account template on more than one VAT account?

Yes. Attach it to every nominal account that holds part of the VAT control balance. Each account is checked independently against the accounts selected on the active VAT reconciliation.

My account shows as unreconciled with a difference equal to the whole balance. Why?

This means the account has not been included in the selected VAT accounts on the active reconciliation. Go to that reconciliation and add the account to its selection, or swap this account template for one that better matches how the account is used.