Hello @murrayzz1
When using Accrual it looks at the invoices which are flagged on each return so they don’t appear on the next return.
When you switch to cash accounting it looks at the payments (which have never been flagged) to assign invoices.
You can set the vat filing start date to the date of your first cash accounting period to exclude anything prior. but you may need to make a manual adjustment for anything missed in the crossover period (e.g. prepayments before the vat filing start date which have been cut off)
I’m not sure why changing the start date would exclude invoices prior, as under the cash basis VAT is payable when the payment is received, so the date of issue of the invoice is irrelevant.
To wit, I reset the VAT start date to the beginning of the period, but it has still included on the VAT return cash payments for invoices issued before the start of this period. I’ve already paid the VAT on these invoices under the accrual basis of previous returns.
Is there any way to exclude from the returns, or is it a case of manually logging the VAT that’s already been paid, and then creating a manual adjustment to the return?
It looks like a module is needed to handle the switchover from one basis to another. It seems to be unnecessarily hard to manage, involving a lot of manual accounting that the software should be able to manage automatically.
Hello @murrayzz1
To wit, I reset the VAT start date to the beginning of the period, but it has still included on the VAT return cash payments for invoices issued before the start of this period. I’ve already paid the VAT on these invoices under the accrual basis of previous returns.
As I said
You can set the vat filing start date to the date of your first cash accounting period to exclude anything prior. but you may need to make a manual adjustment for anything missed in the crossover period (e.g. prepayments before the vat filing start date which have been cut off)
This would ignore any payments made prior to that date. If for example there was a payment (dated after) paying off an invoice (dated before) you would need to make a manual adjustment.