My friend has joined Qf in January after a recommendation by myself. However, he seems to have an issue with his Vat figures.
He files for vat on a monthly basis, so for his November and December returns he was paid a refund of approx 42k in January by HMRC. He tagged the incoming payment as vat liability.
On the Tax summary page, the payment of 42k is now showing as vat liability, but he wants to make this go to zero as it is for a period before he started qf.
Can anyone point me in the right direction how to sort this out?
He should have used an opening journal when he started using QF. Otherwise things like this will happen. Tell him to search for opening balancing journals
I guess so too but he has not, which means it still needs sorting out. Do you know what code nominal code it would come under or how to balance it out? Thanks
How to balance it out - create an opening journal… this is something he can do retrospectively. He’ll need to get a trial balance or suitable balance sheet out of whatever software he was previously using, and that should already include the VAT refund due as an asset (either directly or as the difference between sales vat collected and purchase vat paid out, which he could journal separately to the VAT liability code).
