What Should I Do If I Have Made an Error When Entering a Transaction?

Realising an error has been made on a transaction is not uncommon, it happens - we all do it! That's why Scribe provides you with the flexibility to amend a transaction at a later date, providing a full change history audit trail.

The only time you cannot amend a transaction directly is if it has been included within a VAT return, submitted to HMRC through MTD and subsequently locked from editing. We therefore recommend you do the following before submitting a VAT return:

1. Reconcile all accounts to the end of the period and ensure Reconcile All Banks balances.
2. Review the VAT rate applied to transactions using the VAT List report.

Read on for more information on correcting a transaction error.

Transaction Has NOT Been Included in a VAT Return (or VAT 126) Submission

If a transaction has not been included within a VAT return or VAT 126 submission, you will be able to make amendments to all fields including the VAT rate and amount. Simply select the three dots and 'Edit' to the right of the transaction, make necessary amendments and Save. 

View Change History for more information on the audit trail provided.

⚠️ Note, transactions will not be locked down for non-VAT registered Councils submitting VAT Form 126, so transactions can still be edited despite being included within the reclaim. This is because VAT reclaims are not submitted digitally through accounting software like VAT Returns.

It is fine to make small amendments here (e.g. change cost code or add further notes), but if you need to make changes to the VAT (whether that's removing, adding or amending the VAT amount), the advice below should be followed.

Transaction Has Been Included in a VAT Return (or VAT 126) Submission

Where a transaction has been included within the VAT return or VAT 126 period, the following steps should be taken in order to correct the next return or reclaim.

1. Create a reversing entry. This will involve entering a duplicate of the original entry but with a minus sign in front of the values. The date of the reversing entry must fall within the next VAT period, but all other details should match.
2. Create a correcting entry. Simply enter a new transaction with the correct VAT rate/amount that should have been applied. Again the date of the correcting entry must fall within the next VAT period.

These two entries can be reconciled to the same date, and will net off against one another so as not to affect your bank reconciliation. The entries will also be included within the next VAT submission to correct the overclaim/underclaim.