Overview
Tab Path: Tax > Tax Adjustment / Reverse Charges / Tax Period
QBM has specialist VAT tools for situations that are not handled by ordinary transaction entry alone. These screens should be used carefully because they can affect VAT due, VAT reclaimed, and later reporting.
This guide is based on the actual tax-adjustment and reverse-charge forms, including the fields users see and the way QBM auto-fills linked tax accounts.
Main Screens
| Screen | Tab Path | Use It For |
|---|---|---|
| Tax Adjustment | Tax > Tax Adjustment | Create a manual VAT adjustment journal with a selected tax item and adjustment account. |
| Reverse Charges | Tax > Reverse Charges | Record reverse-charge VAT using a selected tax code and its linked input and output tax items. |
| Tax Period | Tax > Tax Period | Review or manage the reporting-period context before final tax work. |
Important Fields And Controls
| Field Or Control | What It Means |
|---|---|
| Adjustment Date | The transaction date used for the correction. Closed-book dates may require the closing-book password. |
| Number | The journal number. QBM auto-generates it and prevents duplicate journal numbers. |
| Tax Item | In Tax Adjustment, selecting the tax item auto-fills the linked liability account. |
| Adjustment Account | The balancing account used for the manual adjustment. |
| Amount | The VAT amount being adjusted or reverse-charged. |
| Increase / Decrease | Used in Tax Adjustment to tell QBM whether the selected tax item should be increased or decreased. |
| Reference | A short business reference that helps later review. |
| Currency | Available where the form allows multi-currency handling. |
| Tax Code (Reverse Charges) | Selecting the tax code auto-fills the related purchase and sales tax items. |
| Input VAT Item and Account | Reverse Charges uses the purchase-side tax item and then loads its liability account automatically. |
| Output VAT Item and Account | Reverse Charges uses the sales-side tax item and then loads its liability account automatically. |
How It Works
- Tax Adjustment creates a manual journal-style correction for a selected tax item and requires users to choose whether the VAT should increase or decrease.
- Reverse Charges starts from a tax code, then QBM automatically fills the purchase-side and sales-side tax items and the related input and output tax liability accounts.
- Both tools rely on good tax setup. If the tax code or tax items are wrong, the correction tool will carry that mistake forward.
- Users should always treat these tools as controlled exceptions, not as everyday substitutes for fixing the original source transaction when that is still practical.
Tax Adjustment Workflow
- Open Tax Adjustment and confirm the date and generated journal number.
- Select the tax item you need to correct and confirm the auto-filled liability account.
- Choose the adjustment account, enter the amount, and decide whether the VAT should increase or decrease.
- Enter a useful reference and description so the reason for the adjustment is clear later.
- Save only after checking that the adjustment belongs in this period and does not duplicate another correction.
Manual correction warning Use Tax Adjustment when a dedicated tax correction is really needed. If the original business transaction can still be corrected safely, that is often the cleaner first option.
Reverse Charges Workflow
- Open Reverse Charges and confirm the date and generated number.
- Select the tax code. QBM will then fill the linked input VAT item and output VAT item from the code setup.
- Review the automatically loaded tax accounts for both sides of the reverse charge.
- Enter the reverse-charge amount, reference, and description.
- Save after confirming the selected tax code is the correct one for the reverse-charge treatment you intend to apply.
Why the tax code matters Reverse Charges follows the tax code setup. If the code points to the wrong purchase or sales tax item, the reverse-charge result will also be wrong.
Recommended Workflow
- Review the original business situation first and decide whether a tax correction tool is truly needed.
- Use Tax Adjustment when the task is a manual increase or decrease to a VAT item and an adjustment account is required.
- Use Reverse Charges when the transaction should create the matching input and output VAT treatment under reverse-charge rules.
- Review the result in VAT Transactions after saving so the tax effect is visible before return preparation.
Best Practice
- Keep references and descriptions strong enough that another user can understand the correction later.
- Avoid making several small overlapping corrections when one clear correction will do.
- Always review the corrected values in VAT Transactions before filing the return.
- Coordinate tax-period corrections with finance approval where your company requires it.