How to correct transactions included on a tax return

Once a transaction is on your tax return, you can't edit or delete it. If you make a mistake after submitting the tax return, reverse the transaction and re-enter it with updated details. For Draft returns, delete the tax return first, then amend or delete the transaction.

How This Works

Once a transaction is on a tax return, you can't delete or edit it. An incorrect transaction can cause:

• Incorrect bank account balance
• Incorrect customer or vendor account balance
• Incorrect tax return, leading to overpayment or underpayment of tax

Steps to Correct Transactions

1. Create a reverse transaction to cancel the incorrect transaction.
2. Re-enter the transaction with the correct details, if needed.

Which Transaction to Use

• Reverse Money Out with Money In
• Reverse Money In with Money Out
• Reverse a bank transfer with another opposite bank transfer

Reverse Money Out or Money In

To reduce errors, we set up receipts and payments so you only:

• Select sales ledger accounts on receipts
• Select expense categories on payments

To record a refund, set up a special refund option to record money in for expense ledger accounts and money out for sales ledger accounts.

Use a Refund to Reverse Money Out

1. From Banking, choose the relevant bank account.
2. Select New, then Sale/Receipt.
3. Select Enter a refund for a purchase.
4. Enter the transaction details you want to reverse.

Use a Refund to Reverse Money In

1. From Banking, choose the relevant bank account.
2. Select New, then Purchase/Payment.
3. Select Enter a refund for a sale.
4. Enter the transaction details you want to reverse.

Can't Find a Ledger Account?

This usually happens because the ledger account isn’t available for the transaction you're creating. To reduce errors, we set up ledger accounts for specific transaction types. If you need to reverse a transaction, change this:

1. From Settings, then Business Settings, select Chart of Accounts.
2. Select the ledger account you were looking for.
3. From the Visibility section, select Other Payment or Other Receipt.

Raise a credit note and issue a refund if you pay a customer/vendor invoice or include a payment or receipt on a tax return. For more information, refer to the Related Solutions section:

• Create a customer credit note
• Create a customer refund

Reverse a Refund

When the refund incorrectly matches a credit note that remains outstanding:

1. Create an invoice with the same details as the credit note.
2. Create a receipt and use it to pay the invoice. This cancels the effect of the credit note and the receipt cancels the refund.
3. Create a new credit note with the same details as the original. This remains outstanding until you need to refund it or allocate it to an invoice.

This ensures that your customer and bank accounts are correct, and you include the receipt on your next tax return, correcting your overall tax liability.

Reverse a Bank Transfer

Enter the transfer in reverse to cancel the original transfer. Both transfers will still appear in your bank reconciliation and Activity list.

1. Go to Banking, then select New, and Bank Transfer.
2. Enter details of the transfer:
   • Paid from Bank Account: the bank money originally transferred to
   • Paid into Bank Account: the bank the money originally transferred from
   • Date Transferred
   • Amount Transferred
3. Click Save.

Record a refund to a customer

Record a refund from a vendor