How to Reconcile Z-Reports, Sales, and VAT Invoices Before Filing a VAT Return

Before preparing a VAT return, it is important to check not only cash register revenue but the entire sequence: Z-report → sales and returns in Torgsoft → VAT invoices → URVI. This is especially important if you operate several checkouts or stores, make sales on behalf of different Sole Proprietorships or companies, or have processed returns or advance payments during the month. This reconciliation helps identify discrepancies at the stage where they occurred, rather than after the tax return has been prepared.

What exactly needs to be reconciled?

A Z-report contains summary data from an ECR or PECR for a shift: sales, returns, and amounts by payment method.

The «Summary Report for a Period» in Torgsoft for PECRs allows you to obtain this data directly from the State Tax Service server or from the local Torgsoft database.

«Fiscal Goods Sales Analysis» is a Torgsoft mode that lets you check sales and returns by period, accounting center, enterprise, document type, payment method, and other criteria. 

A VAT invoice based on daily transaction totals is prepared for retail transactions specified by the Tax Code of Ukraine (TCU), provided no separate VAT invoice has been issued for them. Reason code 11 applies to such an invoice. tax.gov.ua

There is an important terminology distinction here. In Torgsoft, the action and corresponding section are called «Consolidated VAT Invoice», but for retail sales to end consumers in this scenario, the document is specifically a VAT invoice based on daily transaction totals. It is not one VAT invoice for the entire month.

1. Start with Z-report data

For Torgsoft PECR, open Settings → Software ECR → Software ECR Analytics and use the «Summary Report for a Period» action.

Specify the required date or period.

For reconciliation, it is better to keep the «Use Data from the Tax Service Server» setting enabled. In this case, Z-report data is downloaded directly from the State Tax Service server rather than calculated from local Torgsoft receipts.

The report shows separately:

• the number and total amount of sales receipts;

• the number and total amount of returns;

• the breakdown of amounts by payment method.

These figures should be recorded as the first level of reconciliation. Torgsoft also allows you to generate the same report using local receipts by disabling the use of data from the State Tax Service server. This helps identify discrepancies between what is stored in the Torgsoft database and what was actually registered on the fiscal server. 

For a hardware ECR, the starting point is the actual Z-reports from the relevant ECR.

2. If State Tax Service and Torgsoft data do not match

Torgsoft PECR has a «Download Receipts from Server» action. It is intended for situations where a receipt exists on the State Tax Service server but is missing from the local Torgsoft database, for example, after a local numbering failure or receipt deletion.

The software downloads missing receipts and, if the corresponding Torgsoft document exists, links the receipt to it. If an item from the downloaded receipt cannot be matched to an item in the database, it is marked as «Unrecognized Product». After downloading the receipts, generate the summary report again.

If unrecognized products remain or a receipt cannot be correctly linked to a document, contact Torgsoft technical support to clarify the available options, as the outcome may depend on the configuration of the specific database.

3. Compare Z-reports with Torgsoft sales

Open Analysis → Fiscal Goods Sales Analysis.

To reconcile one day, apply the same data scope:

1. Period — the date you are checking.

2. Accounting Center — the relevant store or retail location.

3. Receipt Fiscal Status — Fiscal Receipt.

4. Document Type — Sales first.

5. Enterprise — the specific Sole Proprietorship or legal entity registered for VAT.

6. If necessary, select the payment method — cash or non-cash payment.

At the bottom of the form, Torgsoft displays the product quantity and total sales amount. Compare this not with an arbitrary monthly total but with the corresponding sales in the Z-report for the same day and accounting scope. Check returns separately by selecting Document Type → Return. The analysis also provides filters by enterprise, payment method, receipt fiscal status, and document type.

If the total amount does not match, narrow the comparison step by step: day → accounting center → enterprise → sales/returns → payment method. This makes it easier to identify the specific transactions causing the difference.

4. If there are several stores or ECRs

For VAT purposes, it is important not to combine transactions belonging to different taxpayers. If sales in one retail chain are processed by several Sole Proprietorships or LLCs, reconciliation and VAT invoices must be handled separately for each VAT payer.

If one taxpayer operates several ECRs or PECRs, the State Tax Service permits two options: prepare a separate VAT invoice based on daily totals for each ECR, or one such invoice based on the combined figures from all ECRs for that day. The key is to apply the same approach during reconciliation so that you do not compare one VAT invoice with the data from only one checkout. cv.tax.gov.ua

5. Determine which transactions belong in the VAT invoice

The Z-report total and VAT invoice amount do not always have to match mechanically without further verification.

A VAT invoice based on daily totals includes transactions that meet the requirements of paragraph 201.4 of the TCU and for which no separate VAT invoice has been issued. Such an invoice uses reason code 11, the buyer is indicated as «Non-payer», and the notional VAT identification number is 100000000000. STS Information and Reference Resource

Therefore, before generating the document, check:

• whether an individual VAT invoice has already been issued for any of the sales;

• whether all selected transactions belong to the same VAT payer;

• whether returns have been accounted for correctly;

• whether advance payments have been included in the selection;

• whether VAT-taxable and VAT-exempt transactions have been combined in one invoice.

Separate VAT invoices must be issued for taxable transactions and transactions exempt from VAT. This does not mean that a separate invoice is required for every 20%, 14%, or 7% rate: the separation requirement applies specifically to taxable and exempt transactions. STS Information and Reference Resource

Do not include advance payments in the daily summary VAT invoice

Torgsoft's «Fiscal Goods Sales Analysis» technically includes document types for advance payments on invoices and orders. However, for tax accounting purposes, this does not mean that an advance payment can be included in a VAT invoice with reason code 11.

The State Tax Service expressly states that a VAT invoice based on daily transaction totals cannot be issued for an advance payment received. Advance payments must be separated from the daily retail total and documented according to the rules governing the occurrence of VAT liabilities. STS Information and Reference Resource

6. Check VAT settings in Torgsoft

If a VAT invoice is generated with incorrect VAT amounts, check the basic settings before looking for a more complex cause.

For correct calculations, Torgsoft provides:

• the VAT rate code and percentage under Product Management → Product Type;

• the «Consider VAT in Product Type» setting;

• the main VAT rate under Settings → Parameters → Accounting.

The official Torgsoft documentation specifically notes that incorrect configuration of these parameters may lead to errors when calculating a VAT invoice or adjustment calculation. 

These are database settings, not monthly operations. If they have already been verified and have not changed, there is no need to reconfigure VAT every month.

7. Generate the VAT invoice only after reconciling sales

Once sales for the relevant day have been verified, select the required accounting center and Document Type → Sales in Fiscal Goods Sales Analysis, then use the «Create Consolidated VAT Invoice» action.

Torgsoft generates these documents based on data from this analysis. To view the generated documents, open Document → VAT Invoice Register and the tab containing consolidated VAT invoices. 

Before exporting the XML file, check the document itself:

• date;

• selling enterprise;

• list of products;

• VAT rates;

• total supply amounts;

• VAT amount;

• reason code 11 for an invoice based on daily totals.

Torgsoft provides a «VAT Invoice Contents» view for this purpose.

8. How to account for returns

The return date is important here.

If the customer returns an item on the same day, the refund amount is already reflected in the daily ECR figures and Z-report. In a standard scenario, no separate adjustment calculation is prepared for the VAT invoice based on daily totals: the summary VAT invoice is generated taking the refunded amount into account. STS Information and Reference Resource

If the goods are returned the following day and the sale has already been included in the previous day's VAT invoice, that particular VAT invoice must be adjusted. For a buyer who is not registered for VAT, the State Tax Service permits such a reduction provided the goods are returned to the seller and the buyer receives full compensation for their value. STS Information and Reference Resource

For consolidated invoices, Torgsoft provides the following procedure: in Fiscal Goods Sales Analysis, select Document Type → Return and create an adjustment. The original consolidated invoice for the sale must already exist. 

9. Check the XML file before registering it in the URVI

After verifying the VAT invoice, you can save it in XML format and import it into electronic reporting software. Torgsoft supports exporting VAT invoices as XML for M.E.Doc and in the official government format. 

At this stage, check the document in M.E.Doc or another application before submitting it to the URVI. After registration, check the acknowledgment receipt: it confirms the document's registration result.

If something does not match

Do not change the VAT invoice at random. Check the data in the order in which it was generated: 

1. State Tax Service Z-report — whether all receipts, sales, and returns are present.

2. Local Torgsoft receipts — whether they match the data on the State Tax Service server.

3. Fiscal Goods Sales Analysis — whether the period, accounting center, enterprise, document type, and payment method are the same.

4. Transactions included for VAT purposes — whether transactions with separate VAT invoices and advance payments have been excluded, and VAT-exempt transactions separated.

5. VAT settings — whether rates and their codes are configured correctly.

6. VAT invoice in Torgsoft — date, seller, products, supply amounts, and VAT.

7. XML in M.E.Doc — whether it passes validation before submission.

8. URVI — whether a successful registration acknowledgment has been received.

In other words, monthly reconciliation should proceed from the original daily records to the tax documents, not the other way around: first Z-reports and receipts, then Torgsoft sales, followed by VAT invoices, and only then registration and VAT reporting.