Unpaid Invoices and VAT owed to HMRC building up

Hi Jamil

HMRC account shows six invoices (INV00009 to INV000014) outstanding on the system because when the payments and explained through bank reconciliation they were not matched to the above invoices. Instead the system created invoices with prefix REC to match the payments. See invoices under "Paid Invoices" with the same values as the one mentioned above.

Best way to clear this is to unallocate the payments, and match them to the INV 0009 to 14 showing as unpaid and delete the duplicates created.

Dashboard balance on the other hand is linked to the balance in the VAT control account which should clear down when payments to HMRC is made. On analysis of this account I can see that the balance has been carried forward for a few years. This can be only cleared by comparing the VAT return entries to the VAT control account and see what entries have been missed on the return.

Hope this has been helpful.

Please do raise a ticket if you need any more assistance on this issue.

Best regards

Latha

Dear Latha

Thanks for getting back to me, greatly appreciated.

Lets deal with the first problem, the unmatched invoices, where the system automatically created RECXXXX entries for unmatched items. I went to the RECXXXX items, there were 3 or 4 of them, and I clicked on VOID, and then went into the MONEY section, and re-explained them with allocation to the appropriate invoices, seems to have settled all of them, I trust was the correct approach.

However that leaves me with the last problem, which I do not fully understand how to resolve. Before I did the above steps of re-allocation, it showed £3,694.14 and now it is showing £3,193.77 which somehow relates to the re-allocation steps, but not necessarily an exact change. Could you advise me of the steps I need to do to resolve this last issue (areas in the application to go to, and steps to correct), as I do not owe anything to VAT.

Many thanks,

Jamil