Just recently started with QB. I run a retail store with 1 till.
We are VAT registered and sell both 0% and 20% VAT items handling cash and card payments.
I've used Michelle Long's video for setting up daily sales.
My questions are:
1) if you make the daily sales equate to £0.00 no VAT amounts are recorded on the VAT returns form. Sales show as £0.00
2) By using the net total for my card sales for the day, then adding 20% VAT the amounts do not match my bank statements as the amount paid in includes VAT. How can I reconcile?
3) A customer buys a number of items, some of which are 20% VAT and some are zero rated goods. This customer pays on card. (or by cash). How can you possibly add the right VAT to either Cash/ Card without recording every single sale? Impossible to do when you serve 200+ customers a day. My tills Z total will tell me the sub total for the day, the amount of VAT owing on the sub total, the amount of card sales and the amount of zero rated sales.
Thank you, I'm very confused. Any replies much appreciated!
Let me first welcome you to the QuickBooks family, Sobie.
Thanks for following the steps provided by @. The information she provided will guide you through the steps on how to record daily sales.
I'm here to help find a way to handle your cash drawer transactions. Let me guide you through the process.
You’ll have to separately track sales receipts with VAT and the zero-rated goods. Then, create an item used to record Vatable transactions.
Check out the screenshot below for visual reference.
You’ll find more information in this article: How to create and use a products and services list.
Once you create the sales receipt, enter the goods on the first line item while you input the Vatable only item on the second line.
This process should help you match and reconcile transactions smoothly.
For future reference, I'm adding a link to our online tutorials. These videos can help you run your business using QuickBooks: Get Started Tutorials.
If you have further questions or other concerns, let me know by posting a comment below. I’ll be around to assist you further.
thank you for the reply, but that doesn't answer my questions. I have set up my products and services as recommended and adding to the sales receipt as 'daily sales'. I am making the daily sale receipt equal £0.00 as recommended too.
Just say my card sale was £12. That's £2 VAT so I add £10 into the sales receipt and click on 20% VAT. On the Bank statement it shows £12, on the sales receipt it shows £10 so I can't reconcile them.
The sale is not added to my VAT Return. (which is the whole point of going to QB for MTD).
Thanks for the quick reply, Sobie.
I appreciate you sharing additional information. It gives me an overview of how you record the transactions.
You’re on the right track in recording the daily sales. I want to ensure the amount posted in your bank is the same as the one in QuickBooks.
Based on the details provided, it looks like you selected the Inclusive of Tax as the calculation method to input the transaction. You’ll have to select Exclusive of Tax for the sales amount to match on what’s posted on the bank statement.
To change the method:
I've attached a screenshot of what the invoice looks like after following the steps.
After changing the calculation method, you’ll now be able to match and reconcile the transactions. For in-depth information about the reconciliation process, check out this article: Reconcile hub.
These steps should get you pointed in the right direction.
Let me know how this turns out or if you need further assistance with these steps by leaving me a comment. I'll be right here with you. Have a good one!
thanks for the reply.
My tax is as shown - exclusive.
this is the problem because on the example below the amount QB shows is net (£5.82) wheras on my bank statement the amount includes the VAT £6.98 so it dees not match.
I post another example too, to show the different sales we record.
Hi there, Sobie.
If you’re working with an existing transaction, you’ll need to manually edit the tax when switching from inclusive to exclusive. You can easily do this by reentering the amount on the Sales Receipt.
For instance, if the sale receipt amount is 5.82 without VAT in inclusive tax, you’ll need to switch to exclusive then reenter 5.28. This makes the sales receipt amount total to 6.98 which is equal to your bank.
Moreover, assigning exclusive tax rate will take apply automatically on a new transaction. Though, if you’re still experiencing this on a whole new transaction, I’d recommend reaching out to our support team.
Also, you can download a third party application to help you track the VAT from transactions to more than 200 customers.
Let me know if you have other concerns with QuickBooks.
Did you ever get an answer to Question one? (if you make the daily sales equate to £0.00 no VAT amounts are recorded on the VAT returns form. Sales show as £0.00 )
I am trying to do our first MTD return, we are a pub and found instructions for how to enter Daily Sales but it involves making the invoice zero, which then means the VAT isn't calculated.
I can take care of this query regarding the VAT on your daily sales.
I understand that this way of recording your daily sales will show a total of zero, but it doesn't mean that there's no VAT calculated on that transaction. It is calculated per line entered on any transaction that has a VAT code on it.
If you're using a separate Point of Sale system and you want to record your daily sales in QuickBooks Online, you can refer to this article: Record your total daily sales. It's divided into several steps from creating a customer for daily sales to depositing your daily sales.
Leave a comment below if you have any other clarifications. I'd be happy to clear things up for you.