Hi @Bernice Cole
@Bernice Cole wrote:
I've spoken with an accountant and they have confirmed I need to.
Personally, I think this is wrong but "ours is not to reason why"!
If you use RCSG20% VAT code on the line item it's going to add/subtract the VAT & leave you with £nil to pay to HMRC. QBO VAT codes are not intended for partial use - so you have to work around what you have.
Since you seem to insist on paying the VAT, you will need to use VAT code S=20% on that line.
Your bill value is now 20% too high - so you need to enter a negative line to compensate (use VAT code NoVAT to keep it off the VAT100). Post this line to your funder's account.
Supplier gets the correct payment.
HMRC gets 20%.
Funder covers the 20%.
This is doing the same job as a journal moving the expense from VAT Control to Funder's account.
Hope this helps.
