These instructions apply to you if you have QuickBooks Release 3 or higher. To check the release number, in QuickBooks press F2 and reference the Product line. It is recommended that you update QuickBooks to R3. To update QuickBooks, from the Help menu select Update Quickbooks, and then click Update Now.

This information applies to those who:

• currently use QuickBooks 2006, 2005, or 2004 (or recently upgraded to one of these)
• report VAT on an accrual basis (standard VAT scheme)
• never used QuickBooks' File VAT feature in this version

Important: If you used the Multicurrency feature, you cannot upgrade to QuickBooks 2008. Tell me more.

1. From the Reports> Accountant & Taxes menu create and print a Trial Balance report as of today's date. Write "Pre-upgrade" on it. Note down the balance on the VAT Control Account.
2. From the Reports> VAT menu, create a VAT 100 report with today’s date. Print the report and write "Pre-upgrade" on it.
3. Verify that the balance on the VAT Control Account agrees to the balance in Box 5 of the VAT 100 report. If these amounts do not match, we recommend you consult your accountant. This could be because you have either overpaid or underpaid your VAT or have transactions misposted. You should reconcile the VAT Account first or seek the assistance of your accountant in reconciling the account.
4. Back up your company file.
5. Close QuickBooks.

After the installation of the product is complete, you should download all product updates to ensure that you are on the latest release of the software. You can do this by going to the Help menu and selecting Update QuickBooks. You will need to shutdown and re-start QuickBooks for the changes to take effect.

1. To start the upgrade process, go to the File menu and select Open or Restore Company.
2. Click Open a company file and click Next.
3. Browse and find your company file (the .QBW file that you just upgraded to the intermediate version of QuickBooks) and then click Open.
4. Follow the onscreen instructions.

   In your upgraded company file:

   1. From the Reports>Accountant & Taxes menu, create and print a Trial Balance from the first day of your current VAT period to today. Label the Report "Post-upgrade”.
   2. Go to the new VAT menu:
      • Click VAT 100 Report.
      • In the From date field enter the first day of your current (not yet filed) VAT period.
      • In the To date field enter today's date.
      • Click Refresh at the top of the report.

      Print the report and write "Post-upgrade" on it.

5. Verify that the balance on the VAT Control Account agrees to the balance in Box 5 of the VAT 100 report.
   • In the event that Box 5 of the VAT 100 does not agree to the VAT liability account, it means there are amounts that QuickBooks could not categorise either to Sales or purchase VAT (examples are Opening balance journals, Make Deposit entries, journals that have purchase items with N code VAT).
   • You can view transaction details of the Uncategorised Tax Amounts by going to the VAT Detail report and changing the ‘From’ date to an earlier month or year.

   We advise you to check the VAT Control account for these type of entries and consider if the difference is material to your business or not. If unsure contact Support or your Accountant for further assistance.

   How do I resolve uncategorised tax amounts?

6. Compare Box 5 of your Pre-upgrade and Post-upgrade VAT 100 reports.
   • If the Box 5 amounts match, continue to the next step.
   • In the event that the two Box 5 figures do not match, you need to adjust the VAT return box or boxes affected by these uncategorised amounts before you use your upgraded company file.

     How do I resolve uncategorised tax amounts?

   Adjusting your VAT return will change the amounts in Box 5.

You're now ready to use your upgraded company file to track VAT. Check the migration report in the Key Upgrader Tasks tab of the Learning Centre for other upgrade results. Once your Pre-upgrade and Post-upgrade box 5 values match, you must complete your VAT return using the QuickBooks File VAT feature from the VAT menu. Compare the figures in Boxes 6 and 7 of your pre and post upgrade VAT 100 reports.

You're ready to use your upgraded company file to track VAT. Check the migration report in the Key Upgrader Tasks tab of the Learning Centre for other upgrade results.