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What VAT category do I assign to VAT Suspense when adding a bank statement entry to Quickbooks?

In Banking, I am checking through my latest bank statement import, clicking Add as I go.

 

One item is the VAT payment I have made.

 

I have set the entry to VAT Suspense, but QB insists that I specify a VAT category before it will Add it. I think this is because it is classed as an Expense.

 

I have tried making it a Transfer, but Quickbooks says this isn't possible for this account: "You can't transfer money in or out of this account. It's used by the system to track tax amounts."

 

What am I doing wrong here? Do I assign a VAT category, and if so, which one, or am I managing this in the wrong way completely. Thanks all.

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Best answer 11-02-2018

Accepted Solutions
QuickBooks Team

Re: What VAT category do I assign to VAT Suspense when adding a bank statement entry to Quickbooks?

Hi StimulatingBusiness,

 

Don't worry, I'm going to explain how you use that Record Payment option. That's the best thing for you to do in this scenario; then you're not worrying about selecting VAT codes from the banking screen for your transaction - you'll just match to the VAT payment you've created in the taxes section.

 

When you select Record Payment, the account at the top will say Petty cash as that's likely the first one created back when you started on QBO. Just select the correct bank account, clicking on the drop down box and selecting the account you were working on in the banking section. Ensure Payment is selected. Put in the payment date that matches the record in the banking screen. Put in the amount that you paid, matching the banking record. Put VAT Payment in the Memo, or something similar. Click Save.

 

When you now go back to the Banking Screen; you will be able to match to the VAT Payment.

 

Let me know if that helps.

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Not applicable

Re: What VAT category do I assign to VAT Suspense when adding a bank statement entry to Quickbooks?

That's brilliant - thanks for your help James!

View solution in original post

4 REPLIES 4
QuickBooks Team

Re: What VAT category do I assign to VAT Suspense when adding a bank statement entry to Quickbooks?

Hello

 

Can i just confirm with you are you filing the vat in the Quickbooks Online in the taxes section?

 

Kind regards

 

Emmma

Not applicable

Re: What VAT category do I assign to VAT Suspense when adding a bank statement entry to Quickbooks?

I've been submitting my VAT return in the Taxes > VAT section. But I note that there's an option to Record Payment which I haven't done. It looks inexplicably complicated. For example, the box at the top for Recording the VAT payment says Petty Cash and the VAT Suspense account isn't in the list. Why would it do that? V confused!

QuickBooks Team

Re: What VAT category do I assign to VAT Suspense when adding a bank statement entry to Quickbooks?

Hi StimulatingBusiness,

 

Don't worry, I'm going to explain how you use that Record Payment option. That's the best thing for you to do in this scenario; then you're not worrying about selecting VAT codes from the banking screen for your transaction - you'll just match to the VAT payment you've created in the taxes section.

 

When you select Record Payment, the account at the top will say Petty cash as that's likely the first one created back when you started on QBO. Just select the correct bank account, clicking on the drop down box and selecting the account you were working on in the banking section. Ensure Payment is selected. Put in the payment date that matches the record in the banking screen. Put in the amount that you paid, matching the banking record. Put VAT Payment in the Memo, or something similar. Click Save.

 

When you now go back to the Banking Screen; you will be able to match to the VAT Payment.

 

Let me know if that helps.

View solution in original post

Not applicable

Re: What VAT category do I assign to VAT Suspense when adding a bank statement entry to Quickbooks?

That's brilliant - thanks for your help James!

View solution in original post