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.
However, if you are seeing 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