Hi everyone, I need some help with issuing a refund to a customer... I contacted QuickBooks support but got an answer that turned out not to be actually right.
So, I have my sale transaction, with 20% VAT recorded on it, and then I have my refund expense.
Now, I was told that I should create a credit note for the customer, then record the expense against the Debtors account (with the VAT code of the original transaction, so I'd say 20%?) and then receive a payment from the customer and match the credit note and the expense.
That'd all be great if I could apply 20% VAT to the expense, which turns out I can't ("You cannot track tax on accounts of types Debtors and Creditors.").
What should I do? My main question is, what do I need to do so that the refund amount will be taken off my VATable amount when I do my VAT return?
Thank you so much.
