I accidentally recorded a payment against the wrong order and by the time I corrected it the VAT quarter had changed. Even though I told the system to record the payment as having arrived on the original date it arrived, the system has included the payment in this quarter’s VAT return (even though the VAT was paid last quarter). How can I stop the system from included this payment in this quarter’s VAT return?
You could do an adjustment. But I would double check with an accountant before doing anything to make sure that you are accounting for the VAT correctly.
This topic was automatically closed after 7 days. New replies are no longer allowed.
Unfortunately an opened topic got closed when it wasn’t completed so I’ve started a new one.
I needed to change the invoice a bank transaction was attached to as I originally added it to the wrong one. When I did this, even though I told it to keep the same date for receiving payment it’s added it to the current VAT period rather than keeping it in the last period where it has already been accounted for and paid. It’s now showing up in this period’s VAT return when it shouldn’t be. How can this be resolved?
I have merged this back with the original post for continuity.
Are you using Cash or Accrual accounting? and has the payment/invoice been locked by a return?
It may be easier to make a manual adjustment for this on your next return. But as I said previously you would be best to check with a qualified accountant before submitting.
I’m cash accounting and the payment hasn’t been locked. If I look in the statement of my bank account it’s showing the right date but it’s still including it in this quarter’s VAT return.
Am I right in thinking that this payment would be for a previously quarter that’s already been submitted?
Yes it was paid last quarter
Hopefully I’m understanding this correctly - apologies if I’m missing something.
My understanding is a payment has been moved into a previous VAT period where a return has already been submitted, but the payment belongs there. as the payment was after this period originally when the return was submitted, it hasn’t actually been included in any VAT returns (otherwise the payment would have been locked). Hopefully that’s right, but please let me know if I’ve misunderstood.
If the return for that quarter has been submitted and the payment added to that period afterwards, then it’s automatically pulled through into the next period so it’s included. This way it’s not missed out.
It’s the other way around.
What happened was, I had two outstanding invoices for the same amount due from the same organisation. When I imported my bank statement and tagged the payment I selected the wrong invoice. At this time I was still submitting my VAT manually so it was only when I came to tag the following payment I realised my error. By this time the VAT had been paid for the previous quarter. I untagged and retagged the transaction with the correct invoice keeping the same payment date but it now wants to include this payment in this quarter’s VAT return which obviously I don’t want it to.
Thank you for the clarification.
In this case, I would just make a manual adjustment on the VAT return submission and make a note of it.