I have submitted VAT Returns for last 3 quarters with next one due on 7th November
I have recently been informed to changed accounting method from Cash to accrual on doing this I have some payments from previous VAT returns appearing again.
Why would this happen my previous VAT Returns are locked so very confused to why this would happen.
Any advice would be appreciated.
Thanks
Robert
They are two very different methods of accounting, it happens as in cash accounting the lock is applied to the payments whereas with accrual accounting the lock is applied to the invoice. When you switch accounting methods you would ordinarily need to manually calculate any difference and enter this on the VAT return as an adjustment. All subsequent returns will then reconcile without a problem.
If you like we can apply a cut off date to prevent those earlier invoices from being picked up. This would normally be set as the start date of your next “accrual” return.
Hi Glen
Cash accounting stopped on 31st July 2013, Accrual Accounting started on 1st August 2013.
Can you apply cut of date please?
Regards
Robert
Hi Glen
I see that you have applied the cut off date as requested, but our query is if we where on cash accounting basis prior to 01 August, it was only the cash sales being submitted for VAT Purposes, but now we have cash coming into the bank which are paying sales invoices for prior to 01 August
This would mean that these invoices should be included on our first accrual VAT return, could you please advise as we don’t see them when we download the calculations.
My main questions are:-
i) can you revert back pre-cut off
ii) are we better to manually adjust
FYI - our VAT return is due by no later than 7 Dec 2013.
Your assistance on this is much appreciated.
Many Thanks
Robert
I hadn’t had a chance to notify you of the new cut-off date, but I see it has been changed.
There’s always some manual adjustments needed when changing VAT accounting methods. If the cut off date is reverted then the system will bring in every invoice from that prior date in 2012, that would require a pretty big adjustment.
Hi Glen
Is it easy for you to revert back to the previous cut of date.
Thanks
Robert
Yes not a problem, I have done this for you.
Good morning
We changed from Cash Accounting to Accrual from 1st March 2017 so updated the vat settings accordingly. We have completed the 05/17 VAT return (in QF only so far) making the adjustments into the drop down boxes to account for the invoices that fell in between the two accounting systems. Is it possible to lock down the purchases and sales that the adjustments apply to?
Many thanks
Jay
Hi Glenn
I have run may August Vat with manual adjustments for invoices not paid to 31/08/2019.
Please can you lock down invoices on and prior to 31/08/2019 so that my first accrual vat return does not pick these up??
Hi @jm23bg,
To avoid transactions being pulled into your latest VAT return you would need to lock them into a previous return.
Easiest way to do this would be to run a dummy return for the period before or set your VAT start date inline with the period you need in your new return
Hi
I have run the last cash vat return and changed the parameter to accrual, but on testing with the next vat return it picks up all the invoices from the start of the financial, over the last 3 returns, surely it needs the invoice locking down as its only locked cash till now???
Hi @jm23bg,
Apologies, I hadn’t realised that you were changing accounting method. This makes it more complicated. The only way that you can do this is to have the invoices included and make manual adjustments for what has already been included
Hi
Glenn says earlier in the trail above with regard to the same issue :-
“If you like we can apply a cut off date to prevent those earlier invoices from being picked up. This would normally be set as the start date of your next “accrual” return.”
This is exactly what I want, please can this be arranged, will pay a fee if necessary???
Hi @jm23bg
This is actually an option in your VAT settings area:
Setting this date will exclude anything prior to it from your next VAT return.
Hi Thanks.
So it does not matter if I have previously been using it for filing vat returns albeit on a cash basis??
Regards
John
If you’ve submitted it using a different method it’s likely you will need to make some manual adjustments for it to rebalance.
But if you change the accounting scheme we’ll just calculate the VAT return based on your settings at that time.
Hi
On the 30/8/19 I did a cash vat return with the necessary manual adjustments to take me to be able to change to Accrual on the 1/9/19.
I changed the date as you suggested to 01/09/2019 to “start filing returns”, after having ticked the accrual box and did a test run.
That seemed to work well and I don’t suppose it will change any returns that have been previously filed.
Many thanks for your help on this issue.
John
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