VAT Payment

Hello and welcome to the Community, RDM4

When recording VAT payments in QuickBooks, you should record the payment on the Taxes dashboard (instead of adding the downloaded transaction from your bank feed).

This ensures that the VAT payment is posted to the correct VAT Suspense account. QuickBooks uses two accounts to track your VAT, the VAT Control and VAT Suspense. You can learn more on each here.

Once recorded, you can then match the VAT payment to the downloaded bank transaction. Matching creates a link between the records and ensures that they are not accounted for twice. 

You can undo any bank transaction that has already been added by going to the Bank transactions > Categorised > Click Undo beside the transaction in the Action column.

This moves the transaction back to the For review tab where it can be matched against the VAT payment. 

We hope this helps to answer your query. We're just a post away if you require any additional assistance. 

Thank you.

The payment includes a bank charge.  So I need to match a part - the VAT amount - and create a transaction for the bank charge.

How do I do this?

Hi RDM4 It won't be possible to to record a VAT payment including fees from the VAT section. What you can do is record the actual amount due to HMRC from the VAT section, enter the bank it was paid from, the amount etc. create a separate expense relating to the bank charges and exclude the amount on the for review/banking section. I note that you have previously stated that you have manually recorded the transaction, this would have to be deleted so the amount/s aren't duplicated.

How do I create a separate expense for the bank charge that I can reconcile to the bank account when the feed from the bank account only shows the VAT payment plus costs? The bank account feed doesnt provide a transaction for the costs alone to reconcile against. 

Hi RDM4, in this scenario, you would need to tick each individual entry (the VAT payment for the whole amount and the Expense for the bank charges) on the reconciliation screen. 

As you are excluding the downloaded bank transaction, this won't post to your reconciliation report to reconcile.

Ensure that the dates of both transactions (VAT payment and Expense) are the same, and the amount will reconcile with your overall bank balance. 

You can create the expense from the + New button, with the account that you use to track bank charges/fees entered in the Category field. We'll be around if you have any further Q's. :)