VAT adjustment journal

There may be times when you need to change the VAT liability on your VAT return without amending sales invoices, purchase receipts or bank transactions. This can be done using a VAT adjustment journal.

Create the Journal

You must enable journals before proceeding if you have not already done so.

  1. Go to Journal and select Create.

  2. Edit the Date to any date within the applicable VAT period. For example, if you were running the return for Q1 2013 you need to date this journal between 01/01/2013 and 31/03/2013 otherwise it will not appear in the return.

  3. Select VAT Journals from the Category list.

  4. In Comment, enter VAT Adjustment and select Create Journal.

Create the journal entry

Complete the journal entry between the VAT nominal codes.

Typically, the following codes are used:

Input VAT – this is the VAT recorded on purchases and outgoings

Output VAT – this is the VAT recorded on invoices and money received

VAT control – this account keeps track of the VAT account balance

If you are unsure what to enter here, it is best to consult your accountant as this will affect your VAT return.

The VAT return will only consider debits and credits made to the Input, and Output VAT Control Codes and will not include anything you assign to any other code even if in the same journal.