Can Profit and Loss Report show Gross Values?

Support
1

Hello,
I am a new user, so firstly I would like to say thank you for the great software and all the help and advise that is provided by the developers and users.

I am a sole trader.
I have been trading a few years and have now reached the point where i will have to go VAT Registered - That is why i decided to start using this software instead of the more basic VT Cash Book that i have been using up until now.

I think this is where my first mistake came - When I first signed up and was experimenting with the software to decide if it’s the one i wanted to use, i set up my account and ticked the VAT registered box as within the next couple of weeks i will be.
Since then i have input all of my transactions going back to 06/04/2021 as i wanted a bit of practise, account history, and to be able to compare with past tax returns to make sure i was doing everything correctly and they matched - This is when i noticed my problem…

When looking at the profit and loss Report, the profit isn’t showing the same as my previous software - I THINK this is down to it showing the NET cost of materials etc assuming that I have claimed the VAT back. Am I right?
When putting in all the historic transactions, i made sure all sales were 0% vat as i wasn’t registered when these were made and all the purchases were 20% as that is what i paid (and was unable to reclaim).

Is there a way I can easily solve this?

Thanks,
Mark.

2

Purchases that were made before you were VAT registered and you weren’t able to reclaim the VAT would need to be entered with the gross amount in the net column and a VAT rate of 0%. The rule of thumb is that you only itemise reclaimable VAT when recording purchases, if you can’t reclaim the vat then it is part of the cost to your business and needs to go in the net column.

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Thank you - that’s what I suspected.
I guess i need to manually go through every receipt to change this?

4

You will indeed, sorry… It’s something that could be scripted via the API if you’re a programmer but even then the time it would take to implement that and debug it you’d probably be just as quick doing it by hand.

5

Thanks Ian!

150 done, 950 to go!
I’m sure it’ll be worth it in the end!

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