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Pooksly
Level 1

Correcting an invoice after VAT filed

I have filed the VAT for the period but have now realised that and invoice within the period is incorrect. I need to amend this but as I am Flat Rate VAT registered QBO will not let me make changes to any transactions already filed.  Quickbooks helpline have told me I need to create a journal entry but will give me no further information as to which accounts I need to credit/debit.

Solved
Best answer February 06, 2020

Accepted Solutions
paul72
Level 6

Correcting an invoice after VAT filed

Hi @Pooksly 

 

If you have filed the VAT, QB will have locked that period.  I think this happens whether you are Flat Rate or Standard.

The accounts you need to debit/credit on a Journal will depend on which accounts are affected by the mistake & you don't specify.

 

Journal method is probably the correct one but by far the easiest way is to leave the incorrect entry as-is.  Accountants love Journals but they tend to be hidden away & I think the VAT-man would prefer that anything that affects VAT is as plain as possible.  Unless it's a large mistake (say, over £1000 of VAT) you're unlikely to be drawn over the coals!

 

  • Create a Credit Note to exactly cancel the incorrect Invoice (or a Supplier Credit if it's a Bill/Expense that's in error).
  • If the VAT is incorrect on the original entry, you have to make the same mistake but in reverse.
  • For clarity, date the Credit as the first day of the current VAT period.
  • Enter a Memo to explain.
  • Now raise the invoice again but with the correct information.

 

You will now have an open credit & an open invoice.  Depending on the amounts & whether the original invoice has been paid, you will need to clear these against each other (Receive Payment) to close.

 

Hope this helps.

View solution in original post

3 REPLIES 3
JasroV
QuickBooks Team

Correcting an invoice after VAT filed

Hi there, @Pooksly.

 

You'll want to get in touch with your accountant on what account to choose in creating a journal entry (JE). This way, we'll ensure the accuracy of your book after recording this.

 

Here's an article you can read for additional reference in creating a journal entry: Create a journal entry in QuickBooks Online.

 
You might also want to check this article for reference in reconciling your bank accounts in QuickBooks Online (QBO): How to reconcile a bank account and common troubleshooting tips [Video].

 
Should you have other questions or concerns, do let us know in the comment section below. I'd be glad to help you anytime.

paul72
Level 6

Correcting an invoice after VAT filed

Hi @Pooksly 

 

If you have filed the VAT, QB will have locked that period.  I think this happens whether you are Flat Rate or Standard.

The accounts you need to debit/credit on a Journal will depend on which accounts are affected by the mistake & you don't specify.

 

Journal method is probably the correct one but by far the easiest way is to leave the incorrect entry as-is.  Accountants love Journals but they tend to be hidden away & I think the VAT-man would prefer that anything that affects VAT is as plain as possible.  Unless it's a large mistake (say, over £1000 of VAT) you're unlikely to be drawn over the coals!

 

  • Create a Credit Note to exactly cancel the incorrect Invoice (or a Supplier Credit if it's a Bill/Expense that's in error).
  • If the VAT is incorrect on the original entry, you have to make the same mistake but in reverse.
  • For clarity, date the Credit as the first day of the current VAT period.
  • Enter a Memo to explain.
  • Now raise the invoice again but with the correct information.

 

You will now have an open credit & an open invoice.  Depending on the amounts & whether the original invoice has been paid, you will need to clear these against each other (Receive Payment) to close.

 

Hope this helps.

View solution in original post

Pooksly
Level 1

Correcting an invoice after VAT filed

Thank you for your reply.  I did exactly as you said and it worked! Thank you for your help.