Manually adjust VAT using zero sales invoice

[Sameera]

Hi.

This is a bit urgent please.

I am trying to create a sales invoice with zero sales but has VAT. This is to include the additional VAT on sales due to changes in flat rate scheme. My client has 30th April quarter, so up to 31st March its 14.5% and then for APril I have to use 16.5%.
I thought the best way was to add VAT via a zero sales invoice, rather then manually adding the figure in the VAT return adjustment box. I don’t like the adjustment option because in the balance sheet any adjustment sit as ‘manual adjustment’, and then I have to do a journal to move it to either sales/purchase VAT control accounts.
SO by creating a zero sales invoice, the system accounts it as VAT on sales rather then manual adjustment.

I can’t seem to manually override the VAT amount on the zero sales invoice. Looking at the post below, i see that there is an option to, however i don’t see it under advance company settings. Is it because i am not the main admin user for this QF account? Thanks

Overridable VAT Amounts for Sales Invoices

We have just rolled out an update to the sales invoice screen that will now allow you to override the VAT amount when creating or editing a sales invoice. This is sometimes necessary when trying to arrive at an exact gross amount (as per the discussion here). Once enabled (see further down ), the new column for the VAT amount will appear alongside the VAT rate, as follows and can be edited accordingly. [image] This editable VAT column is not (at this time) switched on by …

[QFMathew]

Hi @Sameera

That post is a little dated now and I believe you can just override the VAT straight from within the invoice without enabling any options.

You can also do it another way. Create two lines for the same value (but one negative), one with the VAT, and one without. This accounts just for the VAT. For example:

[Sameera]

I did end up doing what you have just done.

However being on flat rate scheme, the update VAT return calculations is picking up FR rate * £24 , rather then the £24.

[QFMathew]

Ah yes, it would for any VAT on the invoices.

There is another method description by another user here. It would involve submitted the VAT return outside of QuickFile, but as it’s a one off it shouldn’t cause too many issues.

[Sameera]

too complicated!.

I decided to go down the manual adjustment route in the VAT return itself, and then do a journal to remove the figure from manual adjustment account to the VAT flat rate sales adjustment account.

[QFMathew]

What is the account you’re working on?

You should be able to manually change VAT amounts without any issue.

[ian_roberts]

@QFMathew

You should be able to manually change VAT amounts without any issue.

You can adjust it down but not up.

[Sameera]

@QFMathew

You should be able to manually change VAT amounts without any issue.

Not sure what you mean? do you mean manually removing the figure from manual adjustment nominal ledger ?

[Sameera]

@ian_roberts

You can adjust it down but not up.

Yes, we can’t add any VAT manually in the invoice if the sales is zero.

However, flat rate scheme has its own complexity.

[QFMathew]

I was referring to the ability to manually edit the VAT amount on the invoice:

For 100% VAT invoices you can only use the two line method. As @ian_roberts mentions there’s no way to adjust beyond 20%. In this situation it would still work as you can manually change the amount to the 16.5% equivalent.

[Sameera]

@QFMathew

What is the account you’re working on?

Account: 6131441877

There have been others where i have done the manual adjustment journal.
One case was when a client was able to claim VAT input on previous 2 years of purchases upon VAT registration.

[Sameera]

@QFMathew

I was referring to the ability to manually edit the VAT amount on the invoice:

For 100% VAT invoices you can only use the two line method. As @ian_roberts mentions there’s no way to adjust beyond 20%. In this situation it would still work as you can manually change the amount to the 16.5% equivalent.

This doe not work when there is flat rate scheme in place.