Hello there, heather62.
You can create a VAT adjustment for the remaining amount in your liability. It is used when you need to decrease or increase the amount of VAT owed for things like credits, discounts, fines, interest, penalties, and corrections for rounding errors.
Let me show you how:
- Go to the Taxes.
- From the VAT Owed list, select the tax agency you're recording the adjustment for.
- Click Record payment.
- Select and check the Make Adjustment box.
- Enter the adjustment amount and reason for the adjustment. Select an account to track the adjustment.
- Click Add and then Record payment.
- Enter the details of the entire VAT payment and click Record payment.
If you're unsure which account to use in tracking the adjustment, I'd recommend reaching out to an accountant. You can also check out these links for more details on how to handle VAT:
I'll be around the corner if there's anything else that you need help with. Take care and have a great day!
