VAT Correction

Question asked by Kate Barron 8 years ago

Hi, I'm sending an invoice out to one of my customers for a correction on missed off VAT on an invoice from 2016. I only started to use ClearBooks in 2017, so don't have an invoice to mark it against in 2017 (and don't want to). How can I send this VAT correction out in 2017, and it not come up in 'Sales'. If i don't include the invoice on ClearBooks at all, then the funds will still be arriving in the Business Bank account, so that can't be ignored surely? How do i account for this. Thanks for your help

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3 Replies

Ah I see thanks - This transaction will need to have a manual VAT rate with the full amount of the invoice going in the VAT box (it's basically 100% VAT)

I was trying to find out if there is a way of doing this from the imported statement, but unfortunately, there doesn't appear to be any way of doing this from there. So I think the only way is to do this as a separate transaction on sales (the alternative route is via journals). A new sales invoice would need to be created with a manual VAT rate set and the full amount entered in the VAT box (0 in unit price):

file

Technically the Account code can be anything - it is not used in the double entry of the invoice (below is the double entry of the invoice above):

file

This invoice would need to be included in the next VAT return.

Best answer
8 years ago

Hi Kate - is there any reason why you don't want to add this as an invoice (there is an alternative)?

Also, do you import your statements?

8 years ago

Hi John,

The invoice was sent out in Dec 2016, so isn't on Clear Books and was paid in Dec 2016 so there's no record in essence of the original invoice. My starting balance for my business bank account is 1st Jan 2017. I have since noticed that the invoice from 2016 didn't have VAT put on it by my accounts team, therefore I have sent out a new invoice just for VAT.. It's not strictly revenue as it's just the VAT from the invoice last year.. Do i just list this invoice as 0 VAT Rate, or not included in VAT return? Does that make sense?

I do import my statements yes.

Thanks

8 years ago

Ah I see thanks - This transaction will need to have a manual VAT rate with the full amount of the invoice going in the VAT box (it's basically 100% VAT)

I was trying to find out if there is a way of doing this from the imported statement, but unfortunately, there doesn't appear to be any way of doing this from there. So I think the only way is to do this as a separate transaction on sales (the alternative route is via journals). A new sales invoice would need to be created with a manual VAT rate set and the full amount entered in the VAT box (0 in unit price):

file

Technically the Account code can be anything - it is not used in the double entry of the invoice (below is the double entry of the invoice above):

file

This invoice would need to be included in the next VAT return.

Best answer
8 years ago

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