processing invoices and bills

[Maf. King]

On Wed 14 March 12 14:52:40 you wrote:
> > Generally, UK VAT is done on an accruals basis, not cash.  This means
> > that the
> > tax becomes due when you do the paperwork, or make the suppy. (the Tax
> > Date on
> > an invoice)  Not when funds actually transfer.  Under this approach,
> > yes,
> > if
> > you write an invoice on 14th March (as I just have) and the VAT quarter
> > ends
> > on 31/3 (it will for me), then the tax from the 14th March is treated in
> > that
> > quarter.  no matter when you actually get the money from the customer
> > (sept/october in your case?)  -  I must include the invoice totals in
> > the
> > relevant boxes 1 and 6 on the vat return and payment due around early
> > april.
> 
> That makes sense but if this is the case then why doesn't GC attribute the
> VAT in the current period when you print a transaction report? It appears to
> wait until the bill has been paid (months later). I take it then that under
> this system, you pay (or get a VAT rebate) even if the bill/invoice NEVER
> gets paid?

Hi Ed,

My experience is that it does....

Got to be quick, am due elsewhere, so please forgive brevity.

1. create an invoice and post it with all dates today.
2. 20% VAT is split appropriately to correct account
3. You can see correct totals in the expected registers, dated today.
4. generate a transaction report on the VAT account, for the current quarter.  
you should see the new transaction (and any others in the date range).
5. in the future, do a report for the quarter (eg. late april, report on the 
vat account jan 1st to march 31st) - still shows the vat component to put into 
box 1 on the return.

6. process payment for the invoice, a new transaction between bank:current and 
assets:AR.  doens't even touch the VAT account  -the report will still be as 
in steps 4 & 5?

which bit am I doing wrong?

cheers,
Maf,