Where do I record a VAT repayment please?

Hello Yvonnedale

If you are using QuickBooks Online more information on how to record this can be found here

If you have not filed the return in the QuickBooks Online or if you are using the Desktop product just reply back to this post

Thanks

Emma

Hi Emma,

Please can you tell me how to record a VAT repayment from HMRC for a filing that was done before moving to QBO.  Please note that since moving to QBO I have filed a few subsequent VAT returns using QBO.

Thanks,

Hem

Hi Ryan_M,

Thanks for the quick reply.

I have created a journal entry as your suggested, but I have one more question - the VAT repayment shows up in my Banking feed but there is no option to "Match" it to the journal entry.  Can you suggest a way to do this as my QBO bank balance currently does not match the actual bank balance.

Thanks,

Hem

Let me help you match your actual bank balance in QuickBooks Online (QBO), Hem.

There are a few criteria that could prevent the QBO from matching the deposit to the payment. Among these are:

• Verify that the transaction has not been reconciled.
• Verify the transaction was entered using the same bank account.
• Make sure the Quickbooks Online transaction has not been previously matched to another bank downloaded transaction.
• Make sure it is not on the Bank Deposit page (undeposited) if it is a deposit or payment received.

For more details about this one, refer to this article: Categorise and match online bank transactions in QuickBooks Online. 

If you're still unable to find the match, you can exclude the transactions instead of matching them. This moves the transactions out of the For Review tab. Then, it will not impact your books since you've already recorded the VAT payment. Just follow the steps and details in this article: Exclude or delete transactions.

On the other hand, QBO automatically creates an opening balance once you connected your bank account. The amount is based on the real-life bank account which causes the incorrect balance in your account.

Since you already entered older transactions that come before your opening balance, just follow the steps in this article to reconcile them: Reconcile transactions that are older than your opening balance in QuickBooks Online.

Once done, perform the steps in this article to match your QBO bank balance and your actual bank balance: Fix opening balance issues in QuickBooks Online.

I have articles here to learn more about fixing balance issues: 

• Fix issues when you're reconciling accounts in QuickBooks Online
• Fix beginning balance issues during your first reconciliation in QuickBooks Online

For more insights about managing your bank transactions, check out this link: https://quickbooks.intuit.com/learn-support/banking/misc/02/uk-banking?label=QuickBooks%20Online.

Fill me in if you need a hand with running your financial reports or any QBO related. I'll be here to help. Have a great day ahead.