SAGE VAT when Cash Accounting

Bloater

Hi Ladies and Gents

How does SAGE deal with Cash Accounting business'?

Does the VAT get posted when the invoice is raised and then an adjustment is made for period end Debtors/Creditors?

Or does the payment/receipt through the bank trigger the transaction through SAGE?

Any help greatly appreciated.

Cheers

sheelagh

Cash Accounting in Sage

When you post a sales or purchase invoice the VAT will be posted to the Sales or Purchase tax control account. The same is true for bank receipts and bank payments and also any journals which you post with VAT applicable code.
When the VAT return function is run, the caluclation will include bank payments and receipts, journals and any payments posted to the sales or purchase ledger. If you run the DETAIL report, you can see what is include in the calculation.

The ones to watch are the sales and purchase ledger transactions. If allocate a receipt (say) to a sales invoice via BANK, CUSTOMER, the receipt will automatically have the same net/VAT split as the original invoice. If you post a Payment on Account, Sage will prompt you to choose the applicable VAT code. If you choose the wrong rate, your VAT reconciliation won't agree.