Vat control is where all the transactions post the vat element and when you file vat the payment or refund is posted to vat suspense, from where it is cleared by payment or refund.
So I am struugling to understand the whole vat suspense control thing?
I have a payment recorded in banking to hmrc when I want to put it into quickbooks what category do I select do describe this payment?
That payment to hmrc was it generated by file vat or did you just write cheque.
It also depends on if you have reconciled that bank account yet?
i am new at using quick books
i have a query like the person above regarding VAT suspense
I am sure that the VAT filer has produce the suspense account, I have reconciled but I need to clear my suspense account out.
My payment have been made to VAT paid
can you please let me know how to clear my suspense account out please
If you are using the online product any transaction that you post VAT codes against will post to the VAT control account. When you mark as filed in the taxes section the transactions in the control account which are within the date range that you have filed will be transferred to the VAT suspense account.
When you then pay HMRC the amount that was due for the period you filed you will then record payment in the taxes section, confirm the bank that the payment was made from, select the date that the amount was debited from your bank account and then confirm the amount and save.
The amount will then be debited from the suspense account and credit your bank account.
If you have done the above and there are remaining amounts in the suspense account they may relate to any amounts that have not been paid (record payment).
Could you clarify on this for me - I have a client new to QB's, we've just added the bank data and in it was his last quarters VAT payment to HMRC. This return won't be in QB's so what would category would I classify the payment to HMRC under, is it the VAT control account?
As the VAT quarter has already been accounted for the payment relating to it will have to be created as an expense and you will, just for this payment, create an expense account and name anything you like.
The VAT control account and suspense accounts are both liability accounts. When you create a transaction and allocate a vat code, apart from No VAT, it will be allocated to the VAT control account. When you mark as filed/submit to HMRC the VAT period from within the Taxes section, the transaction in the VAT control account for that period will be moved to the VAT suspense account and then when you record a VAT payment, from within the Taxes section, for the period you have just filed the transaction will be moved fromthe suspense account to the bank account.