When matching supplier payments on the bank, how do I show the VAT. Sometimes it shows as exempt in the VAT column even though there is VAT on the bill that has been pd ?

Hi accounts527, thanks for joining the QB Community :) - when clicking onto the transaction in the for-review bank tab, are you able to select from a drop-down menu under VAT*? If only the exempt code appears here, please click 'manage rates' to toggle on the required codes. 

Hi, yes I can do this, but only if I click on the "categorise" button, which then shows the transaction as an expense.  Ideally I want to match it to a supplier invoice, so should it be "find match", then it goes on as a bill payment ?  This bit doesn't have a drop down VAT menu. 

Thanks. 

Hello Accounts527, so if you click on 'find match' make sure the correct one is ticked and click save this will then match the transaction from the bank with the transaction in QuickBooks and it will be whatever VAT code you have on the transaction in QuickBooks will be what the vat code is when matched together. Yes it will automatically create a bill payment for you when you match the bank transaction to the bill in Quickbooks.

Hi

Thank for your reply.

This is the way I understood it.  However, there are quite a few times when the VAT in the VAT column on bank transactions doesn't match what is on the invoice.  

Eg - I have an invoice with 20% VAT, but when I come to match it on the bank, it shows exempt ??

Thanks for getting back to us accounts527, when matching transactions the VAT code field on the downloaded bank transaction becomes redundant as only the VAT code on the manually entered transaction (in this case, the bill) will be read, otherwise the system would double-account for VAT. If you added this directly as an expense instead of matching, you would then select the relevant VAT code. Hope this helps :)