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K
ken-kcamarketing
April 6, 2023
Question

I use FRS for VAT in Simple Start. I have a refund from a supplier, which Quickbooks allocates as a Deposit, which increases my VAT. How do I not increase my VAT?

  • April 6, 2023
  • 1 reply
  • 0 views
I have been through the help files, and found this
"If your supplier refund comes through your automated bank feed, you don’t need to record it manually. Simply use the Add function to add the refund as a deposit, and categorise it to the Creditors (Accounts Payable) account."
Again adding it as a deposit increases my VAT, but since it is a refund, it should just contra an expenditure, with no affect on VAT.  How do I fix this.  If I can't, then it would appear Quickbooks is not for me.

1 reply

G
GeorgiaC
April 6, 2023

Hi ken-kcamarketing, thanks for posting on the Community. Please follow the steps below to create a supplier credit and then tie this to the deposit added via the bank feed using a cheque (steps 5-9).

 

1. Select + New and select Supplier credit.
2. In the Supplier field, select the appropriate supplier.
3. Enter the Payment date, Amount, and Category (This is the category, product, or service you’re getting a credit for).
4. Select Save and close.

 

5. Next, go to + New and select Cheque.
6. Add the Payee and select the Bank Account.
7. From the Add to Cheque section, select Add for the deposit and the supplier credit (make sure both are selected).
8. Balance should be 0 as they will cancel each other out.
9. Select Save and close.

K
ken-kcamarketingAuthor
April 6, 2023

That won't work, because immediately I get the upgrade options, as Simple Start doesn't allow you to credit suppliers.

R
RoseJillB
April 6, 2023

Let’s try another way to rectify your concern in QuickBooks Online (QBO), ken.

 

You’re correct that the supplier's credit feature is only available to QuickBooks Online Essentials and Plus versions of the product. In your case, we can manually record the transaction via Bank Deposit and exclude the other one that automatically syncs to your bank feeds.

 

I’ll guide you further into entering a bank deposit:

 

  1. Click the + New icon and select Bank Deposit.
  2. In the Bank Deposit window, navigate to the Add funds to this deposit section.
  3. Choose a vendor from where you received the credit under the Received From section, and ensure that the posting account is in the Accounts Payable (A/P).
  4. Enter the additional details you may have and click Save and close.

 

Once done, you can exclude the transaction from the bank feeds by following the steps in this article: Exclude a bank transaction you downloaded into QuickBooks Online.

 

Additionally, you’ll want to consider visiting this resource to learn more about reconciling your account. This is to ensure your books are balanced and avoid any discrepancies.

 

Keep me posted if you have more concerns about recording vendor transactions. I’m just a few clicks away. Have a good one!

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