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rogerabritt
Level 2

Hi I've charged the wrong VAT amount on a bill that's been paid, how do I correct this and generate a credit note please? Thanks, Roger.

 
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Best answer April 24, 2020

Accepted Solutions
GeorgiaC
QuickBooks Team

Hi I've charged the wrong VAT amount on a bill that's been paid, how do I correct this and generate a credit note please? Thanks, Roger.

Hi rogerabritt, 

 

To correct the VAT amount, open the bill and edit the VAT code on the transaction line to the correct code. This will automatically recalculate the VAT, and create an exception on your open return if the transaction has already been filed. 

 

To create a credit note for the difference paid by the customer, go to the '+ New' icon and select 'Credit note' and enter the customer name, date, product/service, and amount fields with no VAT. 

 

Thanks 

View solution in original post

3 REPLIES 3
GeorgiaC
QuickBooks Team

Hi I've charged the wrong VAT amount on a bill that's been paid, how do I correct this and generate a credit note please? Thanks, Roger.

Hi rogerabritt, 

 

To correct the VAT amount, open the bill and edit the VAT code on the transaction line to the correct code. This will automatically recalculate the VAT, and create an exception on your open return if the transaction has already been filed. 

 

To create a credit note for the difference paid by the customer, go to the '+ New' icon and select 'Credit note' and enter the customer name, date, product/service, and amount fields with no VAT. 

 

Thanks 

View solution in original post

paul72
Level 6

Hi I've charged the wrong VAT amount on a bill that's been paid, how do I correct this and generate a credit note please? Thanks, Roger.

Hi @rogerabritt 

 

Editing a saved invoice (especially if it's in a previous/filed VAT quarter) is likely to cause more problems than it solves.

 

As the customer has paid the invoice (presumably with incorrect VAT) they will need to correct their accounts too.

You don't say for sure whether you've under- or over-charged but, you mention a credit, so I guess overcharged.

 

You could just raise a credit for the overcharged VAT.

   Enter Credit Note

   Line 1 : Goods/Service with incorrect VAT Code (cancels the original)

   Line 2 : MINUS Goods/Services with correct VAT Code (effectively creates a new sale)

 

The Goods/Services sum to £zero.

The total Credit Value is the overcharged VAT.

This Credit Value will be shown in the customer's account.  If you plan to refund, you can raise a Cheque to the customer which will also show in the customer's account - use Receive Payment to check off against other.

 

If you prefer not to have negative amounts on a credit note -  

(1)  Raise a credit note for the entire invoice with incorrect VAT code.  Add a Memo to explain.

(2)  Raise a new invoice with the correct VAT code.

(3)  Raise a Cheque to refund.

(4)  Use Receive Payment to zero the account.

(5)  Customer will need the credit & invoice (as well as the refund) to balance their books.

 

Hope this helps.

rogerabritt
Level 2

Hi I've charged the wrong VAT amount on a bill that's been paid, how do I correct this and generate a credit note please? Thanks, Roger.

Hi Paul

 

Thank you for your response, thankfully Georgia's suggestion was fine; the invoice had not been submitted, I was waiting to fix it before doing that. So great, I'm sorted.

 

Thank you

Roger

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