I need to allocate a VAT refund as an opening balance and when the funds are received allocate it to the VAT control account.

Hi there, accounts663. Could you describe what happens when QuickBooks blocks the transaction? Do you get a specific error message? 

In QuickBooks Online (QBO), the system won't allow you to categorize a transaction directly to a VAT account unless it's tied to an internal tax calculation. Since this refund is from your old software, the system prevents the entry to keep your tax reports accurate.

To get around this, I recommend creating a temporary expense account to act as a bridge. This allows you to record incoming money without the software blocking your path.

It’s also a good idea to check with your accountant to make sure this aligns with your specific reporting needs.

Feel free to get back to us if you have other questions.