I use FRS for VAT in Simple Start. I have a refund from a supplier, which Quickbooks allocates as a Deposit, which increases my VAT. How do I not increase my VAT?

Hi ken-kcamarketing, thanks for posting on the Community. Please follow the steps below to create a supplier credit and then tie this to the deposit added via the bank feed using a cheque (steps 5-9).

1. Select + New and select Supplier credit.
2. In the Supplier field, select the appropriate supplier.
3. Enter the Payment date, Amount, and Category (This is the category, product, or service you’re getting a credit for).
4. Select Save and close.

5. Next, go to + New and select Cheque.
6. Add the Payee and select the Bank Account.
7. From the Add to Cheque section, select Add for the deposit and the supplier credit (make sure both are selected).
8. Balance should be 0 as they will cancel each other out.
9. Select Save and close.

That won't work, because immediately I get the upgrade options, as Simple Start doesn't allow you to credit suppliers.

Let’s try another way to rectify your concern in QuickBooks Online (QBO), ken.

You’re correct that the supplier's credit feature is only available to QuickBooks Online Essentials and Plus versions of the product. In your case, we can manually record the transaction via Bank Deposit and exclude the other one that automatically syncs to your bank feeds.

I’ll guide you further into entering a bank deposit:

1. Click the + New icon and select Bank Deposit.
2. In the Bank Deposit window, navigate to the Add funds to this deposit section.
3. Choose a vendor from where you received the credit under the Received From section, and ensure that the posting account is in the Accounts Payable (A/P).
4. Enter the additional details you may have and click Save and close.

Once done, you can exclude the transaction from the bank feeds by following the steps in this article: Exclude a bank transaction you downloaded into QuickBooks Online.

Additionally, you’ll want to consider visiting this resource to learn more about reconciling your account. This is to ensure your books are balanced and avoid any discrepancies.

Keep me posted if you have more concerns about recording vendor transactions. I’m just a few clicks away. Have a good one!

That was fine, until I came to the Accounts Payable (A/P).  I could not find that account in any of the fields on the Add funds to this deposit page.  Since I cant find it, I can't correctly allocate this refund.

Accounts Payable can not be brought up in the Account field, nor in the Cash goes back to field.

So what now?

Hello, @ken-kcamarketing.

I'm here to share some details about your AP account in QuickBooks (QBO).

QuickBooks automatically creates default accounts in the Chart of Accounts (COA) like Accounts Payable (AP). We can review the COA and check if there's an AP created. 

If you can't find the list, I'd recommend performing some basic troubleshooting steps. Sometimes too much cache accumulated in the browser can cause unexpected with the product. 

To start, access your account in a private window. This way, we can identify if the issue is cache-related. Simply press the following shortcut keys to open:

• Press Ctrl + Shift + N (Google Chrome).
• Ctrl + Shift + P (Firefox).
• Control + Option + P (Safari).

If it works, let's clear the cache in your web browser or use another supported browser. This could be a temporary issue with QuickBooks and the current browser that you use.

In case you've created a journal entry by mistake, you can reverse or delete it in QBO, to ensure your books are accurate.

I'm only a post away if you need more help managing your accounts in QuickBooks. It's always my pleasure to help you out again.

Hi

I have the same problem as Ken, tried in incognito mode, but still no A/P, any ideas? this driving me mad!

I appreciate your troubleshooting efforts, Dicko753. I'll make sure that Accounts Payable (A/P) will display on your Chart of Accounts (COA).

The term Accounts Payable (A/P) is referred to as Creditors in the UK. If you're using QuickBooks Online Simple Start, you'll have to manually create the account since it's not available in this version.

If you haven't created a creditors account, follow the steps below.

1. Navigate to the Transactions menu on the left-side corner, then select Chart of accounts.
2. Click the New button on the right-side corner.
3. Choose Creditors on the Account Type and Detail Type dropdown, then enter an Account Name.
4. Select Save and Close.

On the other hand, if you're using QBO Essentials, Plus and Advanced. The program automatically creates the account in the COA. If you haven't seen the account, let's check your inactive section:

1. Go to the Transactions menu, then select Chart of accounts.
2. Next to the printer icon, click the Gear icon.
3. Select the Include inactive checkbox.

Moreover, I'm sharing this article that'll guide you to make your accounts balanced and accurate: Reconcile an account in QuickBooks Online.

If you still have questions in mind, feel free to drop a comment comment below. I'm here to help every step of the way.