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D
Dickens
January 8, 2021
Solved

Journal entries: In order to claim VAT on transactions paid in Credit Card Payment, each item must be entered in a Journal.

  • January 8, 2021
  • 1 reply
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Journal entries: In order to claim VAT on transactions paid in Credit Card Payment, each item must be entered in a Journal. The items with VAT must state the NET figure, which can be taken from the receipt or calculated. With a number of items to be entered, there is often a difference in the Quickbooks Total, against the actual Credit Card Total paid. Of course the totals MUST balance as the Journal cannot be saved. On many occasions I have had to adjust some NET items by 0.01p, in order to obtain a balanced TOTAL. I can't avoid this, however worry that this is incorrect? Please can a Quickbooks advisor offer some advice?

Best answer by Ashleigh1

Hello Dickens, 

 

Thanks for coming back to us, 

 

If the amount is wrong on the taxes to prepare return page, you can do an adjustment there, but we cant tell you what VAT codes or the 2nd account to use for accounting purposes, you will need to speak and seek advice from a trained accountant as we are not trained accountants just technical support. 

1 reply

M
MaryAnn_E
January 9, 2021

Hi  there, @Dickens.

 

In my experience, you can add VAT to the journal entries after you set up the sales taxes. Journal Entry always calculates VAT which you’ll need to have the Expense account portion of the Credit Card PAyment as Exclusive of the VAT amount. So the journal entry will add the Vat amount to the total net.

 

Here's how:

 

1. Click the Create menu (+) and select Journal Entry.

2. Select the accounts, and enter the details.

3. Click Save and close.

 

 Also, you'll want to edit the VAT settings, codes, and rates to manage them. Check out the Edit your VAT settings, codes, and rates section of this article for the steps: How to edit VAT settings, codes, and rates.

 

You can always reach out to us here in Community if you have concerns.

D
DickensAuthor
January 11, 2021

Thank you for your reply re: Journal Entries. However I have the sales taxes set at Exclusive of VAT for Invoicing. Therefore I am reluctant to change the settings when I enter Journal entries. I really wanted to know if it was ok to adjust the NET figure, if required, in order to have the Quickbooks total balance the Credit Card Total paid via the Bank.

A
Ashleigh1Answer
January 11, 2021

Hello Dickens, 

 

Thanks for coming back to us, 

 

If the amount is wrong on the taxes to prepare return page, you can do an adjustment there, but we cant tell you what VAT codes or the 2nd account to use for accounting purposes, you will need to speak and seek advice from a trained accountant as we are not trained accountants just technical support. 

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