I am new to QB and have yet to complete my first quarter with QB. I have a VAT refund on my bank statement for a previous quarter / Year. How do I account for it?

Forum|Forum|3 years ago
July 19, 2022
2 replies
2 views

No text available

QuickBooks Online

GeorgiaC

Level 13

Hi ktmbk2021-gmail-, thanks for your post - you can create a new account in your Chart of Accounts to record this. To do this, click the Cog > Chart of Accounts > New and select a liability account from the 'account type' drop-down. Here, you can enter an open balance for the refund amount. Once saved, allocate the refund in your bank for review tab by selecting the same liability account on the category field of the transaction. This will then reduce the liability amount owing in the account back to 0.00.

Please note the VAT control account should not be used as this is for internal use in QuickBooks only.

ktmbk2021-gmail-Author

Thank you for your response Georgina. Can you please explain further -

Once saved, allocate the refund in your "bank for review" tab by selecting the same liability account on the category field of the transaction. Where is "bank for review tab"?

Karen

Ashleigh1

Level 14

Hello Ktmbk2021-gmail- so you will find the bank for review by clicking the transactions tab on the left hand main navigation bar>banking> for review you will then find the transaction in there to match up.

EmmaM

Level 10

Hello Ktmbk2021, To confirm you want to know how to record the VAT refund? Do you have VAT set up in Quickbooks?

ktmbk2021-gmail-Author

yes that is correct. It is from a quarter before the client was using QB and there is no bank feed

EmmaM

Level 10

Thanks for your clarification Ktmbk2021, As the refund covers a period not filed within QuickBooks, you can create a deposit or record a journal entry to enter the transaction. We'd recommend consulting with an accountant about which chart of account to post this to.

Sign up

Login with SSO

Let's get you signed in

Login with SSO