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Everything you need to know about banking in QuickBooks Online - Discover more
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How do I record VAT correctly on an A/P journal entry


How do I record VAT correctly on an A/P journal entry

I can help you record a payment for a specific VAT period, @mattymoo.


When you enter Accounts Payable A/P on a journal entry, it should be an expense account and an asset account. The VAT code should be an expense, not an A/P. 


You can follow the steps below on how to record a VAT Payment in QuickBooks Online:

  1. Go to Taxes menu and then select VAT.
  2. Click Payments and choose to Record Payment.
  3. Select the bank account you've used to pay HMRC.
  4. Enter the payment date and amount in the appropriate fields and all the necessary information.
  5. Click on Save once you’re done. 

See this article for more information: Record a VAT payment or refund


If you have any additional questions or require further clarification about your account, let me know by leaving a comment below. Have a great rest of the day. 

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