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Philco1
Level 1

I've started using qb for vat from June. However, I have previous vat payments to enter. How do I enter these to adjust the balance sheet

 
5 REPLIES 5
GeorgiaC
QuickBooks Team

I've started using qb for vat from June. However, I have previous vat payments to enter. How do I enter these to adjust the balance sheet

Hi Philco, you can enter these by creating a new liability account within your CoA (Cog > Chart of Accounts > New) - when creating the account, enter the VAT payment(s) amount in the 'unpaid balance' field. After this, record the payment using a deposit (+ New > Bank deposit), selecting the account the money was debited from and the date, and under 'add funds to this deposit' set the VAT amounts are to No VAT, select the liability account and enter the amount. Once saved, the balance in the liability account will show as 0.00 and you can then match the deposit to the payment in your bank if you have this connected to QB. :)

Philco1
Level 1

I've started using qb for vat from June. However, I have previous vat payments to enter. How do I enter these to adjust the balance sheet

I've start using qb from April. 

However, my vat period is from March.

Liability in balance sheet relates to April & May.

How can I post the amount for march to balance the current account?

GeorgiaC
QuickBooks Team

I've started using qb for vat from June. However, I have previous vat payments to enter. How do I enter these to adjust the balance sheet

Hi Philco1, if you're still needing to submit the amounts from March to HMRC, you would enter the sales/purchase transactions with the correct date and VAT code in QB. Alternately, you can enter an adjustment directly against the relevant boxes on your return (Taxes > VAT > Prepare return > See option to adjust).

Philco1
Level 1

I've started using qb for vat from June. However, I have previous vat payments to enter. How do I enter these to adjust the balance sheet

No. The March to May return was done manually direct to hmrc. The payment for this was made in may.

The issue I have is the different account periods for Vat and income tax.

I've stated entering everything from April. 

The liability in balance sheet doesn't look right.

Also, I am on a flat rate scheme

RCV
QuickBooks Team
QuickBooks Team

I've started using qb for vat from June. However, I have previous vat payments to enter. How do I enter these to adjust the balance sheet

Let me share additional information about how QuickBooks handles the changes you've made to your VAT-related transactions, Philco1.

 

Did you exclude the balances when filling them separately? Then, it will decrease your taxable amount and will show under Exception Amount column when preparing your next VAT returns. This is to ensure that no VAT collected or credits earned are missed or duplicated. You can run the vat exception report. This way you'd see the details of the changes made in QuickBooks. Here's how:

  1. Go to the Reports menu.
  2. Scroll down to the Manage VAT section.
  3. Double-click on the VAT Exception Report.

 

We can create a journal entry to correct your balance. I'd recommend consulting with an accountant so you'd be assisted properly with reviewing your VAT setup in QuickBooks and the manual adjustments you've made. You can also contact our Customer Care Support. It would be best if we'll have visuals to it, so we can trace the transactions. That way, they can use a screen-sharing tool and guide you while you're both looking on the same page.

  1. Click on Help and enter something like VAT adjustment.
  2. If you get search results, type need human.
  3. Click on any of the results and click I still need a human.
  4. Click Contact Support Team.

 

I've added these articles to give you more insights on how the VAT exceptions report works:

 

I'd be happy to hear any updates after performing the steps as I want to ensure this is resolved for you. Also if you have questions about running reports, please add a reply below. I'd be happy to assist you further.

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