Correct transactions included on a tax return

You cannot edit or delete a transaction once it has been included on VAT return.

If you've made a mistake and need to change something after you have submitted the VAT return, you must reverse the transaction and re-enter it with the updated details.

For Draft returns, when you haven't submitted the VAT return yet, delete the VAT return first and then amend or delete the transaction.

How this works

Once a transaction has been included on a VAT return, you cannot delete or edit it.

Having an incorrect transaction can mean that

  • Your bank account balance is not correct.

  • The balance of your customer or vendor account is not correct

  • Your VAT return is not correct and you may overpay or underpay VAT.

To make the necessary adjustments, you must

  1. Create a reverse or opposite transaction. This effectively cancels out the value of the incorrect transaction.

  2. Re-enter the transaction with the correct details, if required.

Which transaction do I use?

  • Reverse Money Out with Money In.
  • Reverse an Money In with Money Out.
  • Reverse a bank transfer with the another opposite bank transfer.

Reverse money out or money in

To help reduce errors, we set up receipts and payments so that you only

  • Select sales ledger accounts on receipts.

  • Select expense categories on payments.

To allow you to record a refund, we have set up a special refund option that allows you to record money in for expense ledger accounts, and record money out for sales ledger accounts.

Use this refund option to reverse Money Out or Money In .

Use a refund to reverse money out

  1. From Banking, choose the relevant bank account.
  2. Select New, then Sale / Receipt.
  3. Choose the Enter a refund for a purchase link.
  4. Enter the details of the transaction you want to reverse.

Use a refund to reverse money in

  1. From Banking, choose the relevant bank account.
  2. Select New, then Purchase / Payment.
  3. Choose , then the Enter a refund for a sale link.
  4. Enter the details of the transaction you want to reverse.

This is usually because the ledger account is not available for the transaction you're creating.

To help reduce errors, we set up ledger accounts so they can only be selected for certain types of transactions. For example, you might only want to be able to select expense ledger accounts on payments.

If you need to reverse a transaction, you might have to change this.

  1. From Settings, then Business Settings, select Chart of Accounts.
  2. Select the ledger account you were looking for.
  3. From the Visibility section, select Other Payment or Other Receipt.

If the Payment or Receipt has been used to pay to a customer or vendor invoice or has been included on a VAT return, then you must raise a credit note and issue a refund. For more information, refer to the following help articles:

Reverse a refund

If the refund has been incorrectly matched to a credit note, and the credit note should remain outstanding,

  1. Create an invoice with the same details as the credit note
  2. Create a receipt and use it to pay the invoice. The invoice cancels the effect of the credit note and the receipt cancels the refund. You can then create a new credit note with the same details as the original and this remains outstanding until you need to refund it or allocate it to an invoice.

This ensures that your customer and bank accounts are correct and the receipt is included on your next VAT return which corrects your overall VAT liability.

Reverse a bank transfer

Here you simply enter the transfer in reverse. This cancels out the original transfer. You'll still see both transfers in your bank reconciliation and Activity list.

  1. Go to Banking, then select New, and Bank Transfer.

  2. Enter details of the transfer. You must enter

    • Paid from Bank Account - the bank money was originally transferred to

    • Paid into Bank Account - the bank the money was originally transferred from.

    • Date Transferred

    • Amount Transferred

  3. Click Save.

Related content

Record a refund to a customer

Record a refund from a vendor