Hi Am rusty with regards doing accounts as it has been a few years since I did them. I recently started with small firm and using QB's online (the accountants use Sage) - they have given me the opening balances for end of Qtr 3 VAT, and I was advised by them to put on opening creditor/debtor control accounts into QB's suspense account and then transfer to individual debtor/creidtor account info - how do I go about this? I know that I need to do a journal entry and I want the outstanding balances to transfer from generic suspense account into the individual creditor balances so that we have an accurate overview of outstanding balances - do I Credit the Suspense account and then debit the individual supplier accounts - or is it vice versa? Thanks AMH
You would do the journal to suspense (one credit per the accountant) and then create individual purchase invoices for each creditor invoice that was outstanding. Instead of posting to the normal expense code, you post to the suspense account. This would create lots of debits to contra the credit.
If the client is VAT registered, how you account for VAT depends on whether they are on cash accounting or standard accounting.
If they are on standard accounting, you post the purchases invoices with the VAT code that doesn't appear on the return (T9 for sage, not sure for QB)
If they are on cash accounting, you post the net to suspense and allow the VAT to pick up on the invoice. When you are done, you will find that you have a credit left on suspense that will equal the collective VAT on the invoices. I *think* QB will just allow you to journal this to the VAT control account, without affecting the next return. But I am not sure, as I use Sage. Worse comes to worse, the accountant can sort it at the year end.
