cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 2

VAT payment for a period prior to using Quickbooks

Dear All,

 

I have only just started using Quickbooks, previously having used Sage.  The problem that I have at the moment is that I changed over at the end my last VAT quarter, at the end of our company accounting year, the return being submitted to HMRC manually using the figures from Sage.  I then had to make the payment, which I had to enter into Quickbooks to keep bank balance correct, this being in the VAT Suspense account.  Whilst my current VAT return is correct, my balance sheet is now wrong, it now shows up as a negative figure in my current liabilities.  How do I clear this without effecting the rest of the accounts?

 

Is there anyway of entering, for want of a better word, an opening balance on the VAT Suspense account?

Solved
Best answer March 27, 2019

Accepted Solutions
Highlighted
QuickBooks Team

VAT payment for a period prior to using Quickbooks


Hello SiloSean,

 

That's great! Yes, you can make the account inactive so it no longer shows as an option going into your next tax year.

 

Thanks,

 

Talia

View solution in original post

5 REPLIES 5
Highlighted
QuickBooks Team

VAT payment for a period prior to using Quickbooks

Hello SiloSean,

 

The best way to record a payment from a VAT period before you used QuickBooks would be a one off expense. Rather than using the VAT Suspense account, you would need to create an expense account and post the payment to this - this will record the transaction but also ensure it is not affecting the VAT accounts that are designed purely for filings through QuickBooks.

 

Thanks,

 

Talia

Highlighted
Level 2

VAT payment for a period prior to using Quickbooks

Dear Talia,

 

Thanks for the reply.

 

So, I have created an expense account in Taxes Paid, calling it VAT Prior to Quickbooks, just so that I remember what it is when our accountant asks me at the end of our financial year.  Then I edited the entry for the payment in the chart of accounts, changing the category from VAT Suspense, thus it does not show as an asset balance sheet and has reduced the profit and loss figures.  So I guess that it has worked!

 

Presumably, next year I can remove this expense account as it will not longer be required and it should have cleared of all entries.  Then everything will be back to normal.

Highlighted
QuickBooks Team

VAT payment for a period prior to using Quickbooks


Hello SiloSean,

 

That's great! Yes, you can make the account inactive so it no longer shows as an option going into your next tax year.

 

Thanks,

 

Talia

View solution in original post

Highlighted
New Member

VAT payment for a period prior to using Quickbooks

Hi I have started to use QuickBooks and have two issues re VAT. I

 

i) there were two previous VAT returns which Company bank statement uploaded to QB had a receipt and payment showing. I do not think recording each as an uncategorised income or uncategorised expense is an adequate way of dealing with these to get QB to reconcile as they are not that and at year-end, I would need to adjust my P&L etc.

 

 

ii) How do I remove the exceptions showing in my first online VAT submissions which relate to prior period amounts through my bank statement (and which have already been sent to HMRC via prior period VAT returns)? The adjust button is lowering the correct amount not the exception amount in the VAT return.

Highlighted
QuickBooks Team

VAT payment for a period prior to using Quickbooks

Hi SCFSCF, 

 

Thanks for joining this thread - are the VAT returns which the receipt and payment are relating to showing on the Taxes screen, or were these filed before joining QBO?

 

If the exceptions are not genuine we'd usually recommend contacting your bookkeeper/accountant to enter a Journal Entry to remove those, or alternately you can contact our support team on 0808 234 5337 with the reason for the exceptions and the amounts per box to be removed and they'll be able to process this for you.