I recently upgraded to QB Pro 2005 and am doing my first VAT return since then.
I have a partial VAT exemption. In the past therefore I used a spreadsheet to work out my VAT liability and entered my VAT owing/refunded as a cheque/deposit to VAT control. I made a journal entry for any irrecoverable VAT.
On upgrading my VAT summary report shows my last two refunds and one cheque in the TOTAL VAT column. The Pay Vat window shows my liability as it would have been had I not received the two refunds and paid the cheque.
I read "Making adjustments to your VAT liability account" in the manual and tried deleting the three items and replacing them with journal entries (DR Bank CR VAT control) but it prompts me for "Please indivate VAT type Purchase/Sale" which according to the manual it shouldn't.
My year end is 30/04 so two of the items are in last year.
The only solution I can see is to delete the three items. Then ropen the Pay VAT window and let it clear the VAT account however this will change my last years balance sheet and mess up my bank reconciliation.
Anyone got a better idea
Mike