If I switch from accruals-based VAT accounting to cash-based VAT accounting in QuickBooks 2008, will it double count the VAT on all the invoices that have already been settled?

If I switch from accruals-based VAT accounting...

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If I switch from accruals-based VAT accounting to cash-based VAT accounting in QuickBooks 2008, will it double count the VAT on all the invoices that have already been settled, when the money comes in/goes out?

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By Captainblack
14th Aug 2012 12:36

Not sure but

I am not sure how QB 2008 will behave but I don't think it will handle this automatically. You may need to do a VAT quarter 'manually'. However may I suggest that you copy the company file to a newly named file "TEST VAT" or something. Open the new file, adjust the VAT settings in QB, and run the VAT reports. You may not like the answer but at least you can see how it will behave for certain!

Captain

PS Remember to switch back to the real file afterwards!

 

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By chatman
14th Aug 2012 12:48

Thanks Captainblack. I think that means that, where there are a lot of old debts, I will have to review the return every quarter for receipt of pre-cash-basis debts. You would have thought they would have covered that.

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By Captainblack
14th Aug 2012 12:55

I have never seen ...

I am not sure QB won't handle it, but, if I were a betting man ....

Actually I have never seen any accounting software that seamlessly handles switching between the VAT schemes. Does anyone know of any (out of interest)?

Captain

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Replying to Paul Hawes:
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By vtsoftware
14th Aug 2012 16:18

Seamlessly switching between VAT schemes

Captainblack wrote:

I am not sure QB won't handle it, but, if I were a betting man ....

Actually I have never seen any accounting software that seamlessly handles switching between the VAT schemes. Does anyone know of any (out of interest)?

Captain

Yes, VT Transaction+. The VAT status of any unpaid invoice is automatically switched when you change schemes.

Philip Hodgson
VT Software

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Replying to Paul Hawes:
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By 3569787
03rd May 2016 17:33

Acceptum, ClearSEAs and Acceptit does

;

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By petersaxton
14th Aug 2012 13:55

Safest way

I would change the settings and then check what QuickBooks actually does.

It shouldn't be too onerous to alter future VAT returns using exporting to Excel if there's problems.

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By chatman
14th Aug 2012 15:35

Onerous

All I can think of is keeping a separate Excel list of the invoices outstanding at the end of the last accruals-basis quarter. and using a matching formula in the breakdown sheet of subsequent VAT returns to see if any of the invoices in the breakdown match any of the invoices in the first list. This seems like a bit of a pain in the neck to me. Is there an easier way?

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By petersaxton
14th Aug 2012 15:56

Phone Intuit

Why not look at the VAT return detail report for the relevant period as soon as you have some data that seems strange and phone Intuit Technical Support.

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By chatman
14th Aug 2012 16:07

Intuit Technical "Support"

I always have strange-looking data on my QuickBooks VAT reports, but it has not occurred to me to call the help line, because (i) you have to pay, (ii) they always take ages going through every possibility before you realise they cannot help you and (iii) I find them extremely unhelpful

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By petersaxton
14th Aug 2012 16:14

Variable

The help can be variable but if you give them the impression you won't stand for any nonsense they pass you to one of the more knowledgeable technicians.

You don't have pro advisor status?

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Replying to lionofludesch:
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By chatman
14th Aug 2012 16:17

@Peter

petersaxton wrote:
You don't have pro advisor status?

No. Don't use it enough.

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By chatman
14th Aug 2012 16:36

VT: Change from Accruals to Cash Basis for VAT

If I set the client up on VT, could I mark the transactions that have already been filed so that they do not get double-counted when the money comes in?

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Replying to Portia Nina Levin:
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By vtsoftware
14th Aug 2012 20:01

VT

chatman wrote:

If I set the client up on VT, could I mark the transactions that have already been filed so that they do not get double-counted when the money comes in?

No need. It is not possible for the VAT to get double counted.

Philip Hodgson
VT Software

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Replying to Accountant A:
By petersaxton
14th Aug 2012 20:05

Opening balances

vtsoftware wrote:

chatman wrote:

If I set the client up on VT, could I mark the transactions that have already been filed so that they do not get double-counted when the money comes in?

No need. It is not possible for the VAT to get double counted.

Philip Hodgson
VT Software

He means as opening balances.

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By Chris Smail
14th Aug 2012 18:55

Why don't you just take a back up and then try it

Lots of pointless speculation here.

I expect it will be fine.

Find out and let us know.

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By vtsoftware
15th Aug 2012 07:28

VT - switch to VAT cash accounting

Chatman. Sorry, I did not read your question properly!

If you have outstanding invoices that have already been included in a VAT return:

Enter the invoices with VAT cash accounting turned offCreate and save what is in effect a dummy VAT return.  This marks the VAT entries with a contra mark that indicates they have already been in a returnTurn VAT cash accounting onEnter the remainder of the outstanding invoices

Philip Hodgson
VT Software

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By chatman
15th Aug 2012 09:24

I'll do a test

Thanks everyone. It would be good if Intuit was as helpful as VT. Mind you, maybe they would be if they had anything good to report.

I will take Chris Smail and Captainblack's advice and set up some dummy transactions with a test file.

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By carnmores
16th Aug 2012 13:01

no

invoices that have been included under accruals will reappear on the cash vat reports - you will need to make an adjustment .

i have commented on this before and contacted Intuit they dont seem to care

it a ticking job im afraid

going from cash to accrual is marginally better!

anyway your question is slightly awry, if the invoices have already been paid they should not appear on future vat cash reports,  its invoices that have been reported on previous accrual based reports and are currently settled where problems arise

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Replying to dbowleracca:
By petersaxton
16th Aug 2012 13:32

Badly worded

carnmores wrote:

invoices that have been included under accruals will reappear on the cash vat reports - you will need to make an adjustment .

i have commented on this before and contacted Intuit they dont seem to care

it a ticking job im afraid

going from cash to accrual is marginally better!

anyway your question is slightly awry, if the invoices have already been paid they should not appear on future vat cash reports,  its invoices that have been reported on previous accrual based reports and are currently settled where problems arise

I think he meant invoices that had already been included in a previous VAT return. But I take your point.

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Replying to Glennzy:
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By chatman
16th Aug 2012 17:34

Whoops!

petersaxton wrote:
I think he meant invoices that had already been included in a previous VAT return. But I take your point.

You are right Peter; I did. Thanks for pointing that out.

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By chatman
16th Aug 2012 13:05

Thanks carnmores. Saved me some work.

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By carnmores
16th Aug 2012 19:01

whats badly worded

the question or the answer

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Replying to Michael Davies:
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By chatman
16th Aug 2012 19:29

My Error

carnmores wrote:

whats badly worded

the question or the answer

My question.

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By carnmores
16th Aug 2012 21:00

thanks

mine always are

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