processing invoices and bills

[Ed Delves]

Hi Maf,

I think I have got to the bottom of this thanks to your help. See below:

> I take it that the Assets:Accounts Receivable:VAT paid out register looks
> correct?

Yes

> my only other suggestions are to double check your dates and filter 
> accouns
> etc. on the report options.

These are all correct.
>
> note that the VAT split should be at date of posting, not date of payment
> (accrual accounting) on the A/P transactions (you said the opposite in an
> earlier post, and I meant to point this out then)

This appears to be crucial - the VAT is split as you say at the time of 
posting but won't obviously show on a transaction report until the bill has 
been paid (or should it?) The problem I have is that, by agreement with our 
vendor, bills are not paid for at least 6 months so when a VAT return is 
done and the transaction report generated, it does not show up. I have now 
gone back to a known VAT quarter where I have a pdf copy of the transaction 
report for the period and have redone the transaction report again now that 
the bill has been paid. The correct VAT amount now shows up.

Problem solved but unfortunately it means that my VAT returns dating back to 
2009 are all wrong to a 5 figure amount. Would it not be better if the VAT 
amount appeared on the current transaction report when the bill was paid 
rather than retrospectively appearing on a report for a period that has long 
passed? It looks like I now have a major headache to deal with with HMRC!

>
> Do any other reports show breakage?  What happens if you run the account
> report from the A:AR:VAT paid account?

I have a similar problem with vendors who tend not to pay invoices within a 
VAT return period. Now that I am aware of this, I will be able to make a 
note of outstanding amounts and adjust VAT returns accordingly.

Any further comments welcome and thanks for your help.

Ed