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SR_2958
March 7, 2022
Question

Nominal coding of Expenses with VAT is posting to P & L account, when the VAT is recoverable and should be posting to the VAT control account.

  • March 7, 2022
  • 1 reply
  • 0 views

Hi

 

I am a new user of quick books. The system has been in place for circa 2 years. The company is registered for VAT. When a new expenses is selected and a exclusive of VAT option is selected the net cost posts correctly to the nominal I have selected or from the purchase order, however the VAT amount, whilst calculated correctly then automatically posts to code 7006, which is a P & L code.

Questions

1. Where is the form nominal selection controlled from for where the VAT element posts too (i.e what makes it go to 7006)?

2. How do I change this as it should be on a balance sheet code? Either a asset or negating from the output tax liability.

 

The output tax works fine and credits income and vat liabilities and debits debtors, it just appears to be an expense issue. It is as if it quickbooks believes the VAT on expenses in not recoverable for all items.

 

Thanks

 

 

I

1 reply

M
MadelynC
March 7, 2022

Thanks for sharing your concerns in the Community, @SR_2958. I’m here to help, so these figures will be posted on your balance sheet code.

 

Cached data might be the reason behind this. Please know that once the browser's cached files have issues, QuickBooks functionalities may get affected. You can perform some troubleshooting steps to get this fixed.


First, open your QuickBooks Online account in a private or incognito window for testing. You can use these shortcuts keys below for quick navigation:

 

  • Google Chrome: Ctrl + Shift + N
  • Safari 11 or newer: ⌘ + Shift + N
  • Mozilla Firefox: Ctrl + Shift + P
  • Microsoft Edge: Ctrl + Shift + P


Once logged in, check out your expenses. If the amount reflects appropriately to intended accounts, get back to your regular browser and clear its cache. Doing this helps the program to run better. You can also use other supported browsers as an alternative.


If you need more information about managing your transactions with VAT, just visit our Global Help articles for Taxes to learn more.


Please leave a message if you need further assistance with your VAT transactions. I’m always here to help. Have a good day, and stay safe!

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