Warning: due VAT/Sales tax is not entered correctly

Causes in a double-entry accounting file

In a transaction with a due VAT code, the VAT amount is registered as a credit on the VAT account.

Normally:

  • The Debit account is a Balance sheet account (with 1 or 2 as a BClass)
  • The Credit amount is a Profit & Loss statement account (with 3 or 4 as a BClass), or, if there is a sale of estate goods, is a Balance sheet account (with 1 or 2 as a BClass).

In your transaction the accounts seems to be entered in the opposite way:

  • The Credit account is a Balance sheet account (with 1 or 2 as a BClass)
  • The Debit amount is a Profit & Loss statement account (with 3 or 4 as a BClass),


Causes in a income/expenses accounting file

In the transactions, it seems that the due VAT is entered in the opposite way to what it should be, and:

  • in the Category column a category registered in negative has been entered
  • or, in the Category column an account registered in positive has been entered


Solutions

Please verify that:

  • The accounts you used are the correct ones
  • The VAT code you used is the correct one
  • If you are entering a correcting operation or a credit note, you maybe forgot to enter the minus sign "-" before the VAT code

This is a warning message and not necessarily an error. If you think the operation is correct:

  • You can ignore the Warning message
  • You can avoid the program to show the Warning message for this VAT code, by checking the Not warn column in the VAT Codes table.

 

 

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