First of all, thanks for a great program.
In our country we have to pay VAT every 2 months. The program shows one default Liability of “Tax payable”. How do I go about to correctly enter VAT payments and VAT returns?
For example: Tax payable shows $2000.
End of February I pay $2000 VAT. How would I correctly enter this? If I make a Journal entry and debit the Tax Liability account then my suspense account also gets an entry which I obviously don’t want.
Similar with VAT returns, if I make a Journal entry and credit the Tax Liability account the suspense account also gets an entry.
Do I have to create some extra accounts somewhere and make Journal entries that have both debit and credit entries? Or is there another way to compute VAT payments and returns so that the Tax Payable account shows the correct amount after VAT payments.