I have two separate payments leaving bank - one is the net and one is the VAT payable. (VAT paid first and then the balance added next day) How do I connect these?

Hi barbara

Are these payments relating to payments made to a suppliers bill/invoice, if so have you created this bill/invoice in QuickBooks?

Hi John, thanks for getting in touch.  Yes the invoice was created, but the payer only saw the VAT figure and paid that first.  He then paid the balance the next day, so I have two amounts going out and only one expense recorded on the system.  I'm just wondering how I show that the two amounts are linked to this invoice and that one of them is reclaimable VAT?  Thanks

Hello barbara12,

Click one of the amounts within your bank feed, select Find match, locate then tick the invoice and save. This will make a payment against the invoice for the amount, and leave an open balance of the other amount. Do the same for the other transaction within your bank, find and tick the same invoice then save - this should then close the invoice and mark it as fully paid.

Please let us know if this works.

Thanks,

Talia

That's great Talia, I'm just not sure how to label the VAT figure as VAT?  

Barbara

Hello Barbara,

The VAT is accounted for by the invoice itself - as soon as the invoice is marked as fully paid, the VAT amount will post to your return. :)

Thanks,

Oh that is great!  Many thanks!

Barbara