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Frequent Explorer **

How do I enter a payment to Autoglass for excess due - VAT does not agree

I have had a receipt from Autoglass for replacing a windscreen where I had to pay the excess of £75.00.  We are registered for VAT, but we have had to pay them the VAT due on the WHOLE job, not just our £75.00 payable, so £75.00 net + £31.34 VAT amount = £106.34 Total amount.

Solved
Best answer 01-02-2019

Accepted Solutions
Moderator

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

Hi @Leets,

 

Adding an item option when recording an expense transaction is only available for the QuickBooks Online Plus version. If you are using the lower version of QBO, you can add the VAT amount through journal entry and use the VAT Control account. If you need further assistance when adding the journal entry, I suggest consulting your accountant.

 

That will guide you entering an exact VAT amount in QBO. If you have other questions, please don't hesitate to post again. I'm here ready to help!

QuickBooks Team

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

Hello Leets,

 

You can delete the journal entry since it will not affect the VAT return. The best way to record the Autoglass payment is to create an Expense transaction. Then, manually change the VAT amount by following these steps:

  1. Click the Plus icon located in the upper right-hand corner.
  2. Under Supplier, click Expense.
  3. Choose the payee from the drop-down list.
  4. Select the Bank/Credit account, Payment date, and Payment method.
  5. Choose Exclusive of Tax from the Amounts are drop-down menu.
  6. Select the account from the Account drop-down list.
  7. Enter the amount which is £75.00, and select 20% from the VAT column.
  8. Under Subtotal, change the VAT amount to 31.34 so it totals to £106.34
  9. Click Save and Close.

I've also added a sample screenshot for your reference.

 

Please let me know if you need anything else. I'll be around to help you some more. Thanks.

 

expense.JPG

12 REPLIES 12
QuickBooks Team

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

Hey there, Leets.

 

You'll have to create another item for the VAT amount. Here's how:

  1. Click the Gear icon, then choose Products and Services.
  2. Click New, then choose Service.
  3. Fill in the necessary fields, then click Save and close.

When you create the payment, the payable amount should be No VAT. Then, add the item we created. 

 

Though, I suggest checking with your accountant on the best way to handle this. 

 

Please check the screenshot below.

 

 

Feel free to leave a comment if you need more help. I'm just around. Happy New Year! 

Frequent Explorer **

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

Hi there,

 

Thanks for the info - I have started creating a service, but which VAT do I select please?

I have also started on creating the expense, but do not have the product/service option

Frequent Explorer **

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

Screen dumps attached!

Moderator

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

Hi @Leets,

 

Adding an item option when recording an expense transaction is only available for the QuickBooks Online Plus version. If you are using the lower version of QBO, you can add the VAT amount through journal entry and use the VAT Control account. If you need further assistance when adding the journal entry, I suggest consulting your accountant.

 

That will guide you entering an exact VAT amount in QBO. If you have other questions, please don't hesitate to post again. I'm here ready to help!

Frequent Explorer **

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

Hi Karen,

 

Sorry to bother you again!!!

 

I have created the journal entry for the VAT:

 

debit VAT control £31.34

credit the credit card £31.34 so now the car expense account, credit card and VAT control account are all correct and balances reconciled.......

 

However, when I ran a VAT control report it was out by £31.34 - this amount had been excluded from the VAT Box 4 reclaimed section - how do I solve this please

QuickBooks Team

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

Hello

 

Could you provide a screenshot of what you are seeing on this report so we can look into this further for you. If all the balances are reconciled correctly that is good. Did you get your accountants help with the journal entry?

 

Kind regards

 

Emma

Frequent Explorer **

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

Hi there,

 

Don't have an accountant I'm afraid - just me!

 

Attached is a screen shot of my journal entry

Frequent Explorer **

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

This a screenshot of the entry for £31.34 on the VAT control account on 29/12/18 which correctly reduces the running balance owed to HMRC

Frequent Explorer **

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

Finally, this is a screenshot of the VAT report showing VAT reclaimed on the other expense paid on 29/12/18, but not the journal entry.  The causes the balance owed to HMRC to be £31.34 too much!

QuickBooks Team

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

Hello Leets,

 

You can delete the journal entry since it will not affect the VAT return. The best way to record the Autoglass payment is to create an Expense transaction. Then, manually change the VAT amount by following these steps:

  1. Click the Plus icon located in the upper right-hand corner.
  2. Under Supplier, click Expense.
  3. Choose the payee from the drop-down list.
  4. Select the Bank/Credit account, Payment date, and Payment method.
  5. Choose Exclusive of Tax from the Amounts are drop-down menu.
  6. Select the account from the Account drop-down list.
  7. Enter the amount which is £75.00, and select 20% from the VAT column.
  8. Under Subtotal, change the VAT amount to 31.34 so it totals to £106.34
  9. Click Save and Close.

I've also added a sample screenshot for your reference.

 

Please let me know if you need anything else. I'll be around to help you some more. Thanks.

 

expense.JPG

Frequent Explorer **

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

Hi there,

 

3rd time lucky - that has worked!

 

Many thanks,

 

Lita

QuickBooks Team

Re: How do I enter a payment to Autoglass for excess due - VAT does not agree

Great to hear Lita, Let us know if you have any further questions at all. We'll be happy to help :)