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D
denisemc
August 31, 2020
Question

insurance

  • August 31, 2020
  • 1 reply
  • 0 views

I have received a credit note from a supplier for the settlement of an insurance claim so it has zero vat.

when I off set it against their supplier invoice  it doesn't include the vat of this supplier invoice.

eg credit is £120 and supplier invoice is £100 plus £20. I would expect £20 to be includes in my purchase vat but it just cancels the invoice without it be included in any vat totals. 

1 reply

J
JamesDuanT
August 31, 2020

Hello there, denisemc.

 

The amount on the supplier invoice depend on your supplier whether they'll include the VAT or not. If they didn't include it, you'll have to record it manually. With that said, you might have to consult the supplier about the VAT amount. Then, reach out to your accountant on how to record it. You're likely to create a journal entry with this. 

 

Note that QuickBooks only calculates the VAT on the customer invoices and other sales transactions.

 

Let us know if you need anything else. Additional details would be much appreciated.

 

 

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