Hi,
I’m wondering if I use a journal to administer a VAT Margin Scheme for second hand vehicles, that QF will pick up the journal entries and feed them into the VAT return?
This is an example of what I am planning to do (using simple numbers)
The Sales Invoice
I can create an ordinary sales invoice for 1,000 with no VAT.
When I post this invoice, it will
Dr Receivables / Bank 1,000
Cr Sales 1,000
This 1,000 of sales will feature Box 6 of the VAT return: Total Value of Sales excluding VAT, QF will pick up this value automatically.
The VAT Margin
The VAT payable with the above figures is 67.
I’m planning to use a journal to post this, but I’m not sure which code to post the 67 payable to, and whether I can be sure it will be picked up by QF.
I could use this journal:
Or this one
I’m hoping someone can confirm that the VAT return will pick up the 67 in either or both of the journals.
Using Invoices for the 67
I read the help forum and saw that using invoices has been suggested.
I couldn’t square the use of invoices, because if I post an invoice then the system is expecting to receive a payment.
In the scenario above, the 67 VAT payable isn’t charged to a customer, it is charged to the company’s profit on that individual sale (400 x 1/6 = 67).
The customer will pay 1,000 and QF will receive the 1,000 and settle the invoice.
But if I use the method I found in the help forum (here), (and in the example image below) then QF will, unless I am mistaken, show a receivable of 3,600, of which the customer will only ever pay 3,500, and this will leave 100 unpaid on this invoice.
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Any suggestions / comments welcome 
Thanks.
