How credit memos and invoices are recognised in the VAT report depends on which accounting process you are using, and if the invoice has been paid or not; see our separate FAQ about this.
If you see invoices and credit memos from different accounting periods in the same VAT report, you should check the ‘Include Unclosed Entries’ setting:
- Select ‘VAT Return’
- Select the ‘VAT period’ that you wish to see
- When the ‘Include Unclosed Entries’ setting is set to 'Include Historic', the report will include transactions which haven’t been closed for:
- Any prior VAT period OR
- All historical items, if no VAT period has been closed
- When the ‘Include Unclosed Entries’ setting is set to 'This Period Only', the report will NOT include transactions which haven’t been closed for:
- Any prior VAT period OR
- All historical items, if no VAT period has been closed
See also: What happens if I raise a credit note in a different accounting period to the invoice