Manual VAT Adjustments

Question asked by Jeanie Stevens 9 years ago

Hi,

My business has just gone Limited. I have been manually submitting VAT returns and would like to start using the Clearbooks facility for the new Company. However, there are some invoices for the old business that will need to be included on the next VAT return, that will be submitted for the new Company (the VAT number has just been carried across). The invoices have been entered onto the old business's Clearbooks acct, but they won't be entered onto the new Company's Clearbooks acct. Is there a way to manually adjust the VAT return to allow for this? And is there a way to avoid this affecting the VAT balance that is being calculated in the new Company's Clearbooks acct?

Thanks in advance,

Jade

3 Replies

Hello Jade,

You will be able to use a journal in that case where you do not need to create an invoice but still have it effect the VAT return. This will be an adjustment journal where you will need to get your accountant to give you the journal entries for debit and credit.

You will need to use the VAT control account on the Clear Books system for any adjustments. If you need to increase your VAT bill, please tick the include in VAT return SALES and, vice versa,if you need to decrease your VAT bill, you will include in VAT return PURCHASES.

Regards,

Vanish

Hello Jade,

You can enter all the invoices on to the new Clear Books account so you have a record for it on the system and that it shows up on the correct financial period.

However, when you do to conducting your VAT report, you can use the tick boxes on the left hand side to exclude these invoices which have already been included in the OLD accounts VAT return.

This is the best method for you to use to keep your accounts accurate.

Vanish

Hi,

Thanks for your reply. However, the issue is not entering the invoices onto the system where they have been included in an old VAT return (and having to exclude them from the new VAT return). The issue is needing to include the VAT in the new VAT return, but without entering the invoices onto the new Clearbooks account (they do not belong to the new company).

Thanks,

Jade

Hello Jade,

You will be able to use a journal in that case where you do not need to create an invoice but still have it effect the VAT return. This will be an adjustment journal where you will need to get your accountant to give you the journal entries for debit and credit.

You will need to use the VAT control account on the Clear Books system for any adjustments. If you need to increase your VAT bill, please tick the include in VAT return SALES and, vice versa,if you need to decrease your VAT bill, you will include in VAT return PURCHASES.

Regards,

Vanish

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