Multiple VAT returns received as a single payment

Matching a single payment to different QuickBooks transactions is only a few steps away, I'm here to guide you on how:

Often, matching QuickBooks Online banking transactions can be quite confusing if you have deposited multiple checks at one time. You need to be able to determine which amounts total the deposit and be sure you have correctly recorded the payment from each customer, and the amount deposited to the bank. When this happens, you'll have to create a record so you can make a match with the associated bank transaction. To do this, you can follow the steps below:

To record a VAT payment: 

1. Go to Taxes and select VAT (Take me there).
2. Select the Payments tab.
3. Select Record Payment.
4. Select the bank account you've used to pay HMRC.
5. Enter the payment date and amount in the appropriate fields.
6. Add a memo if needed.
7. Select Save.

To record a VAT refund: 

1. Go to Taxes and select VAT (Take me there).
2. Select the All returns ▼ dropdown menu, then choose the specific VAT period you need.
3. Select the View summary ▼ dropdown menu, then select Record Refund.
4. Select the bank account the refund has gone into.
5. Make sure you've selected Refund under Payment Type.
6. Enter the refund date and amount in the appropriate fields.
7. Add a memo if needed.
8. Select Save.

If you are adding transactions from your bank feed, you'll need to record the VAT payment here first, then match it to the transactions on the Banking page. For more information on how to pay your VAT to HMRC, go to the last part of this article and check out the article: Record A VAT Payment Or Refund In QuickBooks Online.

Furthermore, QuickBooks provides dozens of reports that cater to different aspects of your business. Learn how to customise them to make sure you'll get the information you need: Customise Reports In QuickBooks Online.

Keep in touch if you need anything else about VAT or how you match transactions in QuickBooks. We're here to make sure everything is covered.

Hi there

Thank you for your detailed reply, unfortunately it doesn't really help me. 

I understand how to record a vat payment or receipt, and then how to match that with a bank transaction. I have done this with some other VAT payments no problem :grinning_face:

The problem I have is that HMRC have combined a payment and a refund together and just paid me the balance, the difference between them. So for example if I had one return where I had to pay £100, but the next one where they were paying me £250, all they've done is combine these and send me a payment for the difference, £150,

Hoqever because the bank payment doesn't match either of the VAT receipts QuickBooks doesn't know how to match them, and won't let me select them manually.

I need to be able to combine the two VAT totals together somehow so that QuickBooks recognises the difference is £150, and matches them to the total. 

I'm new to QuickBooks, having only changed earlier this year because I needed software that was MTD comparable, and I presumed this would be an easy job on the banking page, just to match the one banking transaction to two items? It seems a fairly basic function, for example you may submit two invoices to a company and they may just pay you the total of both together in a single payment. Or you yourself may have received a couple of invoices or bills from a company and just pay the total in a single payment.

So having one bank payment, and manually matching it to two or more invoices, bills, tax payments etc should be pretty standard I'd have thought? 

Thanks for getting back to us and providing an update on your concern, Kevin. I want to ensure your query about VAT return gets sorted out, so let me assist you with your concerns one at a time.

First, you can manually record your VAT payment. I'll guide you on how:

1. Go to the Taxes menu and choose VAT.
2. Select the Payments tab and choose Record Payment.
3. Select the bank account you've used to pay HMRC.
4. Enter the payment date and amount in the appropriate fields.
5. Then, add a memo if needed.
6. Click Save when done.

From there, manually record a deposit for the £150 payment that HRMC has sent you. Here's how:

1. Go to + New and select Bank Deposit.
2. Click the Account dropdown and choose the account you want to put the money into.
3. Tick the checkbox for each transaction you want to combine.
4. Then, ensure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
5. Select Save and new or Save and close.

Once done, exclude the bank payment you've mentioned above that doesn't match the VAT receipts.

When everything is all set, I've got this handy resource here to further guide you on how to organise your transactions in QBO: Add and match downloaded bank transactions.

I'll be around if you need further assistance with managing your transactions, and feel free to keep me posted on your progress. I'm here to help you in any way I can. Enjoy your day!