How to process a VAT refund and give a credit note to user#

This is acheived by creating a journal entry.#

• Create report for customer to find out how much VAT has been paid for the period.
• Goto customers, select Create credit memo
• Select name of customer
• In the Item column, Select Add New
• Type "service", "Vat" add no VAT code, which account - "expense account" new expense account "VAT Only"

make journal entry

account - vat control

debit - type in amount

2nd line - choose same expense account as credit memo

new line

"accounts receivabvle"

credit - add amount

name - paymaker

choose "output = sale" radio

• Goto company, make journal entry.
• Window pops up.
• Goto column called "account".
• Select VAT control
• Type in amont refunded under debit.
• In memo, type a reason why this has occured. e.g. "Accidently charging customer"
• Select expense account. select add new account if account called "VAT adjustment" doesnt already exist.
• In next line, Select "accounts receivable" - this automatically create "credit memo".
• In name column select the correct "customer name".
• The Credit amount will automatically appear.
• Save and close - This Automatically reduces VAT liability for this quarter by the amount.
• Fill out form from HMCE website to specify reason why liability is reduced for this quarter.

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