The VAT calculator is using old invoices on which to base current period VAT calculations. This has resulted in an over-payment last qtr. Is this a known bug?
Can I just check what accounting method you’re on please? Is it Accrual or Cash Based?
This will help me narrow down where the issue may be.
Hi QFSian,
I’m on the cash accounting method.
Thanks
The old invoices which are being pulled in, have they been paid recently (or recently marked as paid regardless of when they were actually paid)?
Hi QF Sian,
I’m checking on previous VAT calculations - it’s going to take me little time but I will come back to you with more detail.
Thanks,
Paul
Hi Sian,
It would seem the last VAT return 1/11 - 31/1 included Customer Payment on Account invoices which had already been received against for the previous qtr an appear on thecalculation breakdown for that qtr?
Paul
Because you’re on cash accounting, we will account for the income when it’s received and tagged to the client’s account. You can specify the VAT rate at the time.
However, when you then pay off an invoice using this credit, we add a negative line against the prepayment, and account for it at the invoice VAT rate on the return.
For example, if I have a prepayment of £24 (£20 + £4 VAT), this is accounted for at the time of the payment. Then when I match it to an invoice, we remove it from the VAT return as a prepayment, and account for it again as a match against the invoice.
You should see both entries on the calculations report.
Hi Matthew,
I think i get that but my last qtr return includes prepayment values from invoices that I had marked as payment received in the previous qtr and the invoices are listed on that return calculation breakdown.
Thanks,
Paul
When were they tagged in QuickFile?
@ Matthew -
It must be me - but if they were marked as payment received in the previous qtr, how do they form part of the following qtr calculation as ‘prepayments’ all with the same date which doesn’t actully match any of the dates entered to the invoices?
Thanks,
Paul
Hi Matthew, I issed your last question about when the invoices were tagged and not sure where to find this info>
However, the attached screenshot shows invocies related to a different qtr appearing in the qtr I have started to prepare (SB2435 & SB2639) - these are distorting the amount of VAT payable. I am really confused as the dates entered are accurate and relate to the previous qtr. However, as I mentioned before, the previous qtr did not take account of these?
Rgds,
Paul
I’ll send you a private message to get a few account details from you so we can discuss this in more detail.
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