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Correct transactions included on a VAT return

Created on  | Last modified on 

Summary

How to edit or delete a transaction included on a VAT return in Accounting Start.

Resolution

This explains what to do when to edit or delete a transaction included on VAT return.

If you've made a mistake and need to change something after you have submitted the VAT return, you must reverse the transaction and re-enter it with the updated details.

For Draft VAT returns, when you haven't yet submitted the VAT return, delete the draft VAT return and then amend or delete the transaction.

How this works

Once you include a transaction on a VAT return, you cannot delete or edit it.

Having an incorrect transaction can mean that:

  • Your bank account balance is not correct
  • The balance of your customer supplier account is not correct
  • Your VAT return is not correct and you may overpay or underpay VAT

To make the necessary adjustments, you must:

  1. Create a reverse or opposite transaction. This effectively cancels out the value of the incorrect transaction.
  2. Re-enter the transaction with the correct details, if required.

See an example

You enter a payment for £120 for some office supplies twice by mistake. You don't notice this straight away and it's now included on a VAT return.

  • Your bank account balance is now £120 less than it should be
  • You've declared an additional £20 on your VAT return
  • When you report on office supplies purchases, it is £100 more than expected

To make sure your bank account and VAT return are correct, you enter an Other Receipt to reverse this. You use the same date, amount, le and VAT rate.

  • Your bank account balance increases by £120 and is now correct
  • Your next VAT return is adjusted by £20
  • Your office supplies are now £100 less and are correct

Which transaction to use

  • Reverse money out with a refund
  • Reverse money in with a refund
  • Reverse a customer receipt with a customer refund
  • Reverse a refund with a new customer receipt
  • Reverse a bank transfer with another opposite bank transfer

Reverse a bank transfer

  • Create refund to reverse the receipt. This creates an opposite transaction
  • Re-enter the transaction with the correct details, if required

Once saved the refund shows on your next VAT return, reversing the original receipt.

  1. From Banking, choose the relevant bank account.
  2. Select New, then Money In.
  3. Choose the Enter a refund for a purchase link.
  4. Enter the details of the transaction you want to reverse.

Reverse money in

To make the necessary adjustments

  • Create refund to reverse the receipt. This creates an opposite transaction
  • Re-enter the transaction with the correct details, if required

Once saved the refund shows on your next VAT return, reversing the original receipt.

  1. From Banking, choose the relevant bank account.
  2. Select New, then Purchase / Payment.
  3. Choose the Enter a refund for a sale link.
  4. Enter the details of the transaction you want to reverse.

Reverse a customer receipt

Do this when you use VAT Cash Accounting scheme, and the receipt is included on a submitted VAT return.

The refund clears the value from your customer account, bank account and updates the VAT return. The sales invoice now shows as Unpaid.

  1. Create a refund for with same details as the receipt.
  2. The sales invoice now shows as Unpaid. Create a new receipt to pay the invoice if required.

Read more about how to reverse a customer receipt

Reverse a refund

If you refund a paid invoice in error, just enter a new receipt to pay the original invoice. This will add the amount of the receipt back into your bank account.

This ensures that your bank account and customer record are correct. The receipt will show on your next VAT return.

Reverse a bank transfer

Here you simply enter the transfer in reverse. This cancels out the original transfer. You'll still see both transfers in your bank reconciliation and Activity list.

  1. Go to Banking, then select New, and Bank Transfer.

  2. Enter details of the transfer. You must enter

    • Paid from Bank Account - the bank money was originally transferred to
    • Paid into Bank Account - the bank the money was originally transferred from
    • Date Transferred
    • Amount Transferred
  1. Click Save.




Related Solutions

Unallocate transactions

Customer refunds

Supplier refunds