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Calvds
March 11, 2023
Solved

Bank feed categorising error?

  • March 11, 2023
  • 1 reply
  • 0 views

I have raised an invoice with 20% VAT applied. However, when inspecting the bank feed the matched invoice has categorised itself as VAT exempt. 

 

Does anyone know why and how to sort it?

 

many thanks 

 

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Best answer by RoseJillB

I appreciate you for posting your concern in the Community, @Calvds. I have information concerning the transactions showing the invoice is exempted from VAT in QuickBooks Online (QBO).

 

Tax rates can be changed and will depend on where you ship your products or perform services at your customer’s address. Thus, you can check your customer’s setup, particularly the billing address and shipping address.

 

Once certain that the customer’s setup is correct and the location where the service is performed is not exempted from tax, I recommend you manually categorise to add the VAT percentage to the transaction.

 

Here’s how:

 

  1. Go to the Banking menu and navigate to the Bank tab.
  2. Locate the transaction where the invoice is reflected as exempt.
  3. Click the transaction to expand and add the VAT percentage from its designated section.
  4. Enter the other necessary details to categorise the transaction and tap the Add button.

 

For your reference, you can view this article to learn more about setting up and using the VAT feature in QBO. 

 

If you’re done sorting out your transactions, you can start categorising the other transactions and reconciling them to avoid any discrepancies at the end of every period.

 

Feel free to add any other concerns you may have here. I’ll ensure you get the assistance you need. Have a good one!

1 reply

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RoseJillBAnswer
March 11, 2023

I appreciate you for posting your concern in the Community, @Calvds. I have information concerning the transactions showing the invoice is exempted from VAT in QuickBooks Online (QBO).

 

Tax rates can be changed and will depend on where you ship your products or perform services at your customer’s address. Thus, you can check your customer’s setup, particularly the billing address and shipping address.

 

Once certain that the customer’s setup is correct and the location where the service is performed is not exempted from tax, I recommend you manually categorise to add the VAT percentage to the transaction.

 

Here’s how:

 

  1. Go to the Banking menu and navigate to the Bank tab.
  2. Locate the transaction where the invoice is reflected as exempt.
  3. Click the transaction to expand and add the VAT percentage from its designated section.
  4. Enter the other necessary details to categorise the transaction and tap the Add button.

 

For your reference, you can view this article to learn more about setting up and using the VAT feature in QBO. 

 

If you’re done sorting out your transactions, you can start categorising the other transactions and reconciling them to avoid any discrepancies at the end of every period.

 

Feel free to add any other concerns you may have here. I’ll ensure you get the assistance you need. Have a good one!

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CalvdsAuthor
April 3, 2023

Thanks for replying,

I am only now returning to this as I don't administer our books often...

Step 3. where you describe clicking to expand the options, in this case there isn't any options.

As you mentioned, I have thought about why this might be the case. Could payment coming from a European bank, in Spain for example cause QB to make this VAT change itself? Remember the initial invoice was raised with VAT at 20% applied.

The nature of the work carried out is, I'm sure rated at 20% VAT. So, is there another way to make it correct?

 

Thanks

 

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CalvdsAuthor
April 3, 2023

Apologies,

 

 On further inspection the method you set out did indeed work.

 

Thanks for assisting 

 

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