Greetings!
I created a bill with zero VAT last year. And I matched the bill to the banking transaction. But it should record as an expense paid by the directors. I've already submitted the VAT report for that time period. Can I delete the bill and bill payment and create a journal entry?
When creating the journal entry, should I pick the date which created the bill last year?
I appreciate any help you can provide.
Hi DileepaNirmal, thanks for your post - you can go ahead and delete the bill, this will simply create an exception for the VAT amount on your open VAT return, however as the rate is 0%, there won't be any impact to your overall VAT box figures. If the transaction was reconciled, this will create a discrepancy of the total amount - you can correct this once the expense is re-entered (if this posts to the same bank account as used on the original bill payment) by entering the same ending date and ending balance as your last completed reconciliation - the new transaction will then appear on screen to be selected, and the account will reconcile back to zero. The JE should be dated with the date that the transaction took place in real-life (i.e., if it occurred last year, enter last years date). 🙂
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