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SRPR
December 10, 2019
Question

VAT adjustment wrongly allocated to savings account

  • December 10, 2019
  • 1 reply
  • 0 views

My accountant advised that I needed to make a VAT adjustment (lower than reporting threshold).   I made adjustment exactly as they advised and submitted the return, that all seemed in order and for the correct adjusted amount as paid.   I have since gone to reconcile and find that the VAT adjustment was wrongly allocated to a savings account we hold.   I obviously didn't notice that it was showing allocation to a particular account when adjusting.   I can't now find any way to go back and amend the adjustment so that it doesn't show in this savings account.  How do I stop this adjustment from showing in the savings account?   At the moment I am reconciling but ignoring this entry so that all our books/accounts balance.  So it is not a case of changing what VAT we are actually paying just a case of changing how it was recorded last quarter in Quickbooks.   What account should it be allocated to?

1 reply

E
EmmaM
December 10, 2019

Hello SRPR

 

If you do a VAT adjustment it would generally be a case of setting up a chart of account for your VAT adjustments so you can clearly see on the balance sheet that this is for that.We can not give accountant advise not being accountants ourselves but generally people tend to set up a liability account to allocate the VAT adjustment to and then the accountant can view on the reports the adjustments you made.

 

It is the case you would not use a bank account you are correct.You can not edit the VAT adjustment however you do have the option of deleting it by going to account history on the bank account and hitting on delete. You can then recreate the VAT adjustment selecting the chart of account you have set up to account for any VAT adjustments

 

We would have to advise as you have filed your VAT return what would happen when you delete the adjustment is you will get an exception in your next return, it would be a case of recreating the adjustment in that return so that the figure is but back to what it was before the deletion of the VAT adjustment

 

Any questions as we appreciate this is your VAT and you want to be sure it is correct just reply back to this thread.

 

Thanks

 

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