Last year we accidentally paid our vat Bill Twice ( dont ask HOW !) , so we have a credit with HMRC . This year we moved our accounts to QF; how do we put the Credit on the system – I guess it’s a Journal, but from what to what
My VAT Return and Balance Sheet , shows we own money, but of course, we want to use the money from the accidental prepayment .
Any help appreciated
Did you make the duplicate payment before transferring to QF or after?
If before, then you should have allocated it to your VAT liability account, which would then show a negative balance (or at least a reduced amount due).
If after, then tag it as a VAT payment against the VAT liability in QF. Just remember to reduce your next payment by that amount!
Thanks for Responding .
The duplicate payment was before transferring to QF , so its setting the opening balance with a VAT credit.
So how would I allocate it to the VAT Liability account
I guess that is 2202 , but What would be the other side for the Journal to balance ?
regards
Mark
Whatever nominal you mean when you say
You need to look at where your old accounts package put the original overpayment, and if it wasn’t 2202 then move it. The original overpayment should have been recorded as a debit somewhere on your balance sheet, so the journal will need to credit that and debit VAT liability.
It should be taken care of in your opening balances. If it was originally allocated to your VAT liability account previously, then just enter your opening trial balance as is, and your VAT liability in 2202 should reflect the overpayment.
If it was put somewhere else in your previous software, then once you have loaded your opening trial balance, you will need to journal it to 2202 by crediting whichever account it is sitting in and debiting 2202.
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