VAT error on AR adjustment

Eve5 · ‎October 22, 2019

I had a list of debtors which includes several that owe zero. One in particular had several entries adding up to zero balance. There was a journal covering these. I used the make payment function to allocate the payment and deleted a journal which had been set up to zero the account. Now the account is still zero but the VAT on the transactions is appearing on the current liability, yet the VAT would have been included on the relevant VAT return 6 years ago when the account was active.

I know I've messed up, but I need to get that £3k off the VAT liability before November! I've only been in the role a few months and not used to QB. Can anyone suggest how to get this back how it was? Thanks

RCV · ‎October 22, 2019

Hi there, Eve5.

If you're referring to get off the £3k balance due to the deletion of the account, then this amount will be included in the Exception Amount column when preparing VAT. These amounts are the transactions you have previously filed but were changed, deleted or even added. This is to ensure that no VAT collected or credits earned are missed or duplicated.

For more details about VAT exceptions, you can check out this article: VAT exceptions and reports.

You can create an adjustment through the VAT return page to get rid off of the amount. You can check out these articles on how to submit a return and adjust a VAT liability:

You can also do it by creating a journal entry. Cases like this, it would be best to contact your accountant on how to properly record this one in QuickBooks Online.

Just hit the Reply button if you need anything else with VAT. I'm here to help.

View solution in original post

RCV · ‎October 22, 2019

Hi there, Eve5.

If you're referring to get off the £3k balance due to the deletion of the account, then this amount will be included in the Exception Amount column when preparing VAT. These amounts are the transactions you have previously filed but were changed, deleted or even added. This is to ensure that no VAT collected or credits earned are missed or duplicated.

For more details about VAT exceptions, you can check out this article: VAT exceptions and reports.

You can create an adjustment through the VAT return page to get rid off of the amount. You can check out these articles on how to submit a return and adjust a VAT liability:

You can also do it by creating a journal entry. Cases like this, it would be best to contact your accountant on how to properly record this one in QuickBooks Online.

Just hit the Reply button if you need anything else with VAT. I'm here to help.

Eve5 · ‎October 25, 2019

Thank you - I appreciate the detailed reply.

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VAT error on AR adjustment