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Level 2

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

 
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Best answer a month ago

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QuickBooks Team

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

Thanks for the screenshot, @lorraine10.

 

I can share a couple of steps and info to ensure you can record this VAT payment in QuickBooks Online.

 

In QuickBooks Online (QBO), you have to record the VAT payments from the Taxes tab to prevent an unexpected error like this. Also, yes, you'll need to assign a category for the said payment. For the best category to use, I recommend consulting your accountant.

 

To review the VAT payments made, here's how:

 

  1. Go to the Taxes tab and then select the Payments tab.
  2. Locate the period of the payment recorded, and then click View.
  3. Check if the bank account, payment date, and amount are the same on the Banking page.
    d430.PNG
  4.  If not, you can delete (using the Delete option from the drop-down) and then recreate it using the same process you normally do.

Then, you can begin matching the VAT payments you've created from the payment entry showing on the Banking page. 

 

The good thing is, you can run VAT-related reports to review the entries you've created. To do this, go to the Taxes tab, and then select the desired report from the View reports drop-down.

d431.PNG

When you're ready, you can start reconciling your account to ensure the accuracy of your books.

 

I've got your back if you have more questions about managing your transactions in QBO. Just add your reply in the comment section so I can assist you further. Take care and have a good one.

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4 REPLIES 4
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QuickBooks Team

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

Hello Lorraine10, 

 

Welcome to the Community page, 

 

We are unable to tell you what VAT category to assign to the VAT suspense account when you adding a bank statement, as it needs to be recorded correctly and we are not trained accountant just technical support. So if you're unsure of what to select then you need to reach out and speak to an accountant about it as they will be able to advise which code to put. 

Highlighted
Level 2

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. 

Highlighted
Level 2

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

 
Highlighted
QuickBooks Team

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

Thanks for the screenshot, @lorraine10.

 

I can share a couple of steps and info to ensure you can record this VAT payment in QuickBooks Online.

 

In QuickBooks Online (QBO), you have to record the VAT payments from the Taxes tab to prevent an unexpected error like this. Also, yes, you'll need to assign a category for the said payment. For the best category to use, I recommend consulting your accountant.

 

To review the VAT payments made, here's how:

 

  1. Go to the Taxes tab and then select the Payments tab.
  2. Locate the period of the payment recorded, and then click View.
  3. Check if the bank account, payment date, and amount are the same on the Banking page.
    d430.PNG
  4.  If not, you can delete (using the Delete option from the drop-down) and then recreate it using the same process you normally do.

Then, you can begin matching the VAT payments you've created from the payment entry showing on the Banking page. 

 

The good thing is, you can run VAT-related reports to review the entries you've created. To do this, go to the Taxes tab, and then select the desired report from the View reports drop-down.

d431.PNG

When you're ready, you can start reconciling your account to ensure the accuracy of your books.

 

I've got your back if you have more questions about managing your transactions in QBO. Just add your reply in the comment section so I can assist you further. Take care and have a good one.

View solution in original post