Quickbooks VAT help

Quickbooks VAT help

Didn't find your answer?

I am new to quickbooks so i am looking for help . 

I am currently looking at quickooks P and L from a new customer and i noticed there is an expense line called " HM Revenue and Customs VAT Expense "  - which accumulates all the VAT on purchases  and on the balance sheet , there is VAT Control and VAT suspense. I know that all transaction in QBO  are posted to the VAT control accounts and when the vat return is prepared the VAT is transferred to the Suspense account to be cleared. I know VAT should not be shown on the PL ( perhaps am wrong) so i am wondering why every expense transaction is posting to this VAT account expense line.  the client has no clue either....

Have they created this account wrong? or am i missing something ? How does quickbooks deals with VAT ? 

any help would help. 

Replies (8)

Please login or register to join the discussion.

Replying to Duggimon:
avatar
By Iamalwaysonamission
17th Mar 2019 21:10

thanks but not on cash basis

Thanks (0)
avatar
By weuk
15th Mar 2019 17:26

Do you submit the VAT in QB?
Once submitted in QB the balance is transferred to VAT A/c in the balance sheet as a creditor.

Thanks (1)
Replying to weuk:
avatar
By Iamalwaysonamission
17th Mar 2019 21:12

Thanks, Weuk - at the moment they do, I am trying to figure this out as the balance on the P and L is quite large so obviously not clearing.

Thanks (0)
avatar
By JD
16th Mar 2019 16:44

Chart of Accounts issue possibly ?

Thanks (1)
Replying to JD:
avatar
By Iamalwaysonamission
17th Mar 2019 21:13

possibly - i am beginning to convince myself this is the issue , but need to be sure

Thanks (0)
avatar
By carnmores
17th Mar 2019 17:50

a couple of points
1) who set it up as it is, maybe they misunderstood
2) if on FRS savings go to P/L so its entirely possible

Thanks (1)
Replying to carnmores:
avatar
By Iamalwaysonamission
17th Mar 2019 21:17

1. the Client set it up themselves
2. not totally sure of this - VAT should be able to clear off as they are on the standard rate.

at the moment their VAT is accounted on three ledgers i.e.

Vat expense (P and), VAT control (BS) and VAT suspense (BS) - so obviously something not right.

Thanks (0)