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Nick_R
August 15, 2020
Question

Split banking transaction (credit card) not seeming to affect the VAT due

  • August 15, 2020
  • 1 reply
  • 0 views
Hopefully I am worrying about nothing, but... I had made a note of what my VAT liability was for the quarter, and had just two entries in the Banking feed left to match. These were for expenses on credit cards and so had to be split between multiple sources, some with VAT and some without. After entering the split, of which over £100 had included claimable VAT on purchases for printing materials, I double checked the VAT repayment due, and it had not change one iota !?! This is obviously very concerning. Please can someone explain and put my mind to rest. Thanks in advance, Nick

1 reply

Jen_D
Jen_D
August 15, 2020

Glad to see you here, @Nick_R,

 

To shed some clarification about this, those downloaded entries in the Banking tab that you match to the transactions in QBO will not affect your VAT dues. Online Banking and VAT processing are completely unrelated features. The main purpose of matching is to ensure the data or transactions in QuickBooks is similar or reconciled to the bank statement.

 

This article will explain how categorising bank entries work in QBO: Add and match downloaded bank transactions [Video]

 

On the other hand, your VAT dues is directly affected by the activities you do in the Taxes menu. Therefore, your VAT liability or balances will only reduce if you make a payment or adjustments in the VAT page. To learn more about VAT processing, see this Resource page: Pay and manage VAT in QuickBooks.

 

Let me know if you have additional question or clarification. I'll be right here if you need anything else. Have a nice day!

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Nick_RAuthor
August 16, 2020

Hi Jen,
  Thanks for the reply. Panic over. I fired up Quickbooks this morning, and the VAT page was now showing the change in the liability I had been expecting.

It turns out that just returning to the VAT page doesn't refresh the figure during a session (despite the whirring green circle). It requires a manual browser refresh before the figure actually recalculates and displays correctly. This might just be a browser cache issue, but the whirring circle threw me.

All good now though.

Many thanks, Nick

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