How do I make journal entries inclusive of VAT?

Hello, @TreasuredPossession.

I completely understand the importance of having VAT in your journal entries. Don't worry; I'm here to help you with that.

 To clarify, the Journal Entry (JE) is actually already reported as VAT exclusive, which means that the amount can be adjusted to be inclusive, but the net amount in reporting will still be displayed as exclusive of VAT. If you want the VAT-inclusive amount to be reflected in the report, an expense should be created instead of a JE. By following this approach, you can ensure that your financial reporting is accurate and in compliance with relevant regulations.

For future help, if you want to learn how to run basic reports in QuickBooks, you can prefer this article: Run reports in QuickBooks Online.

Suppose you have further questions about your VAT. The Community is always available for you. Take care!

Hi, 

Thanks for that explanation. The problem is that I needed to draw those transactions back into the previous year (last year) and raising bills and matching them to the payment, which was only processed after the new year (the transactions occurred the last few days of the year and did not reflect on the bank statement until after the new year) did not produce this result, it only set them out as accounts payable in the trial balance. Would there be some update to the journal system so that the various reports etc can pick up the gross amount rather than vat net amount at least for the future? 

Regards 

 Hello TreasuredPossession, journals are exclusive of vat, so one line is the net amount and the second line is the gross amount and the first line has the vat on which hits the return and that's it.  It will only run on net amount as this is how they are meant to run. there isnt a way around this on the product. So it does it as net not gross as UK products will do it as net if you have VAT turned on. As the VAT part will post to the VAT account on the balance sheet and if it would post to the other accounts it would be double accounting for it. Basically because the transactions are spilt and post to esxpense account and vat account on the system