I'm using A2X to import all transactions from Amazon to QB as a Journal.
The Reverse charge transactions (for Services) on the NET AMOUJNT in BOXES 1 and 6 of the datailed VAT report appear with MINUS sign eventhough the VAT amount is calculated correctly with a plus SIGN.
VAT code used is RCPSG-20.0
as a debit on the journal.
As a result, the total NET amount in boxes 1 & 6 is less.
Made an example :
Posting an expense transaction (manual) as Reverse Charge it appears to be POSITIVE in all VAT BOXES ( always talking about the NET Amount ) .
As per my accountant all expenses ( for RC services) should appear with POSITIVE SIGN in ALL VAT report BOXES !
See attached screenshoots!
QB support can not give me a straight answer yet.
Any thoughts from an Accounting view and from QB view ??
Hello there, @sguk,
I appreciate you taking the time to attach screenshots of your JE reports imported from A2X.
The RCPSG-20.0 VAT codes isn't listed on the default VAT codes for QBO UK account. On the common VAT codes table, the RC SG (20%) is the default reverse charge VAT code for services. This will show as +/- VAT at 20% to Box 1 & 4 and +/- Net Purchase to Box 6 & 7.
I suggest consulting again with your accountant for specific instructions on which account to credit and debit. The amount depends on the code selected and how you post the amount on the JE.
Please keep me posted if you need additional information and I'll get back to you.
Thank you for your reply.
Hello again, @sguk.
Let me point you in the right direction about the negative sign showing on the VAT Report.
Since the journals are coming from A2X, we’ll have to check the tax codes used to track the transactions. I’d love to help take care of this issue for you.
However, reviewing of data requires accessing the company file. Since we’re unable to perform this process here in the Community for security purposes, I recommend contacting our QBO Care Team.
They can help check the transactions in a secure environment as well as tools to investigate this further. You can reach them either chat or phone: Help and Support.
This should help you move forward. Let me how the call goes. I want to make sure this is taken care of.
So when you find a negative number that shouldn't be, then click on the relevant items, change the VAT treatment to anything and then save, then change VAT treatment to what you need it to be and save again.
I had the same experience after I ran reclassification tool and changed VAT code through the tool.
It's one of those small bizarre glitches that you just ahve to watch out for. Noramlly it will not happen if VAT is coded well to begin with.