Bank account amount wrong when doing VAT adjustment

Hello skjdfhdesfvkhj, thanks for posting on the Community page, When you created the adjustment you won't have changed the adjustment account which defaults to the top account on the account list, which is usually a bank account. You will need to delete the adjustment and recreate it using an appropriate adjustment account.

When I try to delete the adjustment it wont allow it. Tried to create a journal entry, that cant be done as the Bank Account does not appear in the list, tried to do a transfer from the bank account to the VAT Control account that's blocked as it says used by system.

I just need to transfer the money from the bank account to some form of VAT Adjustment account, how do I do that

We'd want to ensure we get this sorted out, skjdfhdesfvkhj. 

I understand it's not easy, especially when money is involved. Since you've mentioned that you attempted to transfer from the bank account to the VAT Control account, it says blocked and used by the system. I suggest reaching out to our customer support team. This way, one of our agents can check your account and investigate this further.  

Here's how to reach them:

1. Sign in to your QuickBooks Online company.
2. Select the Help (?) menu.
3. Choose the Assistant tab.
4. Click the Talk to a Human option.
5. Press Get help from a human.
6. Tap either the Chat with us or Have us call you button.

To know about how VAT exceptions work, please check out these articles:

• VAT exceptions
• Submit a VAT return in QuickBooks

Get back to us here if you have other questions or concerns. I'm always here to help. Have a great day!

Hello Community Users, we just wanted to share some detail about VAT adjustments and QuickBooks Online.

When making a VAT adjustment you need to change the chart of account away from the bank account.

If like the user above you have made an incorrect adjustment it would be a case of finding the journal entry and deleting it, as QuickBooks makes a journal entry to show the adjustment. Then you can do the adjustment again to impact the correct chart of account.

More information on VAT adjustments can be found in this article

Note this solution would be if you have not already submitted the VAT return.

You can't delete the journal entry its not allowed, its the first thing I tried, the system prevents this as it states that it is in a previous VAT period.

I assume the only way to rectify this is to create some type of corrective entry, to reverse the change.

Hello  skjdfhdesfvkhj

The above solution would be for an adjustment the user has not already submitted their VAT return. The alternative if the VAT return has been submitted (the original post did not say it had, so my apologies for that. I will edit my response) would be to reverse the Journal entry or create a new journal entry which is a reverse of the one created with the adjustment with the same date or unfile the VAT return in QuickBooks and then delete the journal and recreate the correct entry and refile.