Just to add a bit more. I have checked again and it is in fact transferred. I have check marks beside transferred, submitted, paid. and nothing is editable in last month's. I have not yet completed this month's because of the double liability that is throwing up.

Hi Feroras,

Have you definitely double checked that:

1) the previous return is 100% reconciled (i would find transactions from the previous month & see if they have been flagged as VAT reconciled) - it could be that the system transferred the money & paid the amount but the transactions must be flagged as VAT reconciled

2) you are putting in the correct dates in the return - even if you hadn't reconciled those dates, it should not pull through any figures for transactions in a previous date period unless you select "reconcile previous un-reconciled transactions". I know it sounds simple but i can't think of any other reason it would pull through figures from a previous VAT return unless the dates had not been amended for this return.

Kind regards,

Those journals shouldn't have gone through as T0 as they shouldn't appear on the VAT return, regardless of the date.  Check in Settings, Company Parameters, VAT.  The non-vatable tax code is normally T9.  If it isn't, make sure you understand why it isn't. As they've been posted with T0 instead of T9, I would just edit the journal and correct that.

Double checked both and previous is 100% reconciled and correct dates in this months. However, I should mention that we are cash basis and I need to include a few supplier invoices from last month that were paid this month.

Thanks for that. Non-vatable is set to T9. I don't know why it went through as T0. I cannot directly edit the journal as it is all edits are greyed out. Is there another way to edit it? 

If you have run the month end already & prevented any other transactions from being changed then the only way to edit the transaction is to restore from an old backup.

If you can't edit it, simply post the exact reverse of the same journal, using T0, then post the correct journal using T9.  Yes, the T0 journals will appear on the VAT return detailed report, but they will cancel each other out so not affect the totals.

That worked. Thanks a lot.