Quickbooks and direct debits

JJH1969
JJH1969 Registered Posts: 110 ? ? ?
I have recently taken on a client who has posted direct debit electricity payments to supplier account plus expense code and VAT account. The invoice has come in an been posted to supplier account. Does anyone know how to remove the direct debit payments?

Comments

  • JodieR
    JodieR Registered Posts: 1,002
    If I've understood the scenario correctly you need to do one of the following:

    (a) If the VAT has not yet been filed then open the cheque record on your screen and change the expense code to 'accounts payable', delete the VAT code and enter the supplier name (ie Npower) under 'customer:job'. Then go to the pay bills screen and tick the relelvant bill(s), click 'set credits' and click on the payment(s) which cover that bill.

    (b) If the VAT has been filed then you won't be able to modify the cheques like I described. You COULD open the VAT liability register, locate the relevant cheques and untick the filed box and then follow the instructions in (a). I think that if you're using the accruals VAT method then it should adjust your next VAT return to correct the error, but I suggest that you check that this has happened correctly, and take backups while you're doing it in case it doesn' work out right.

    (c) The other option would be to enter supplier credit notes to cancel the invoices entered and use the direct debit cheque amounts as the 'correct' values, and then enter one bill as the outstanding amount at the first date of the current VAT quarter so that going forward you can deal with it properly.
  • JodieR
    JodieR Registered Posts: 1,002
    Just to add, if you want to make entries to contra the direct debits you can't use the 'make deposits' screen as there's no way of accounting for VAT here, but you could post general journals Crediting the expense account and VAT account and Debiting the Bank account, that should work.
  • JJH1969
    JJH1969 Registered Posts: 110 ? ? ?
    Thanks Jodie - sorted now :001_smile:
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