Action Required: Review VAT of transactions created or modified on August 11, 2025

On August 11, 2025, between 11am and 2:30pm PDT, a system issue may have impacted VAT calculations on transactions in your account. If you have VAT turned on, it’s possible that VAT wasn’t included for transactions created or modified in that timeframe. This includes invoices, sales receipts, quotes, project quotes, credit notes, or refund receipts.

Here’s how to identify transactions for review.

Step 1: Run a report of August 11th transactions

1. Follow this link to complete the steps in product.
2. From the Type report name here dropdown , search for the Transaction List by Date report. 
3. Select Filter, then search for and select Modified on from the first dropdown . Leave the second dropdown as Equals.
4. The third dropdown is the date picker. Set the date to August 11, 2025.

Step 2: Review and save each transaction for VAT accuracy

1. Select a transaction from the report to open it.
2. Review the VAT amount and update it, if needed.
   Note: You may want to include a memo to the customer explaining that the updated transaction now has the correct VAT, while the previous one lacked the correct amount.
3. Select Save and close.
4. Repeat this process for each transaction on the report.

Remediation steps for invoices

1. Open each transaction and review if the VAT is showing in the summary section.
2. In case of new invoice experience:
   • If no VAT is present, check if the transaction is set up correctly as Inclusive of Tax or Exclusive of Tax in the Invoice amounts are dropdown .
   • Select the correct VAT code under the VAT column. 
   • Lastly, select Save or Review and send on the transaction.
3. In case of old invoice experience:
   • If no VAT is present, check if the transaction is set up correctly as Inclusive of Tax or Exclusive of Tax in the Amounts are dropdown .
   • Select the correct VAT code under the VAT column.
   • Lastly, select Save or Save and send on the transaction.

Remediation steps for expenses

For transactions that may have affected VAT calculation on expenses, you will need to take the following steps for remediation:

1. Open each transaction and review if the VAT is showing in the summary section.
2. If no VAT is showing, it may have been saved with VAT as out of scope.
3. You will need to change the selection from the Amounts are dropdown , as required.
   Note: Once you select Inclusive of Tax and Exclusive of Tax, the VAT columns will appear with no default selection. You must select the correct VAT code in the VAT column and then save the transaction.

These steps will make sure your transactions and reports reflect accurate VAT calculations moving forward.

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We apologise for the inconvenience this caused and appreciate your understanding. 

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