I have made a Flat Rate Vat adjustment on my return.
The return was filed with the correct amount and paid, so far so good.
I have just looked on the vat control (Liability) account and it is showing as an increase instead of a decrease of the adjusted amount.
Why has this happened, have I missed something?
Welcome back to our forum, @JD01234,
The posting of the adjustment in the Liability Account, depends on the Adjustment Account selected for that entry. If the purpose of the adjustment is to decrease the payable, like if you received a credit and you owe less VAT, use an income account for it.
This is an example an adjustment created with an income account:
An increase in the liability results from using an Expense Account for the adjustment. To correct this, go back to the adjustment and verify the account used and recreate it when necessary. Follow these steps when recreating the adjustment:
You can also refer to the steps in this article for reference: Adjust your VAT liability
Let me know the result after checking on this. I'll be right here if you need further assistance with the adjustment or anything QuickBooks related. Have a nice day!
Thank you for your informative response
After reading through your advice I noticed that I did indeed post to an income account, but...
To ensure the amount was deducted from the vat return I placed a minus in front of the amount to adjust the vat to be paid.
Am I correct in thinking that this has therefore increased my income account rather than decrease it?
My accountant was incapacitated so I had to do the return thinking it would be easy enough