I have posted this before but wondered if anyone had any updated guidance on this.
Can anyone advise as to the correct procedure for dealing with PVA in Xero when using cash accounting?
VT Accounts help sets out how this should be dealt with in VT https://www.vtsoftware.co.uk/transplushelp/purchase_of_goods_from_the_ec... but I can't find anything on Xero.
My understanding is that the PVA amount should end up in boxes 1 and 4 and that this is achieved using the 'Apply Postponed VAT Accouning (PVA) adjustments' option on the Xero VAT Return window and that the value of imported goods, transport and fees should be included in box 7 on an accruals basis.
Is it a case of making a manual adjustment to remove any cash accounting entries from box 7 relating to the imported goods, transport and fees paid supplier invoices and adding the actual invoiced value of goods/costs imported in the quarter?