Before you add a bank transaction to your VAT return, you will need to ensure that the nominal codes you use are set correctly.
To do this, you would need to go to Settings> Chart of Accounts.
Under the column for “Type” you would need to use either; Turnover, Cost of Sale, or Expenditure.
Once you have set up your nominal codes with their respective types, when you go on to enter transactions they will appear on the VAT return as follows:
| Box 1 | Box 6 | ||
| Turnover | Money In | £20 | £100 |
| Turnover Refund | Money Out | -£20 | -£100 |
| Box 4 | Box 7 | ||
| Expenditure Refund | Money In | -£20 | -£100 |
| Expenditure | Money Out | £20 | £100 |
| Box 4 | Box 7 | ||
| Cost of Sale | Money In | -£20 | -£100 |
| Cost of Sale Refund | Money Out | £20 | £100 |