Hi Steve,
Thanks for your reply.
The issue with your / QF suggested both options is that both involves adjustment in the VAT return. We want to avoid manual adjustments to minimise chances of error & beats the point of automation. For a quite a few years we used to manually adjust the VAT returns arising out reverse charge, as we deal in products that attract reverse charge where buyer accounts for VAT. Thankfully with QF adding reverse charge functionality to the invoices, just with one tick we have managed to get vat returns correct. So going back to manual adjustments for something we do regularly (import in foreign currency) will be taking a step backwards. It will also be prone to errors. We will have to pick all supplier invoices + HMRC statements at the time of VAt return & then working out adjustment amount is prone to errors, say if you work out incorrect amounts or miss one statement etc,
One idea that we are playing with is to create a fictitious supplier called - “HMRC Postponed Import VAT” & attribute all VAT amounts in GBP to this supplier on VAT columns, this obviously matches with the HMRC statement as we raise this invoice from the statements. Then to tick Postpone VAT Box to get the VAT amounts filled in correctly in the VAT return. The only downside is that we are not able to create purchase invoices with zero value. So we are having to put 0.01 on Gross column & then later on crediting it to close the invoice. This way all our HMRC statements match with their corresponding QF purchase invoices.
The actual vendor invoices are created in original foreign currency with zero VAT no boxes ticked.
May be QF can remove the restriction of raising zero value purchase invoices.
