VT Opening balances re cash accounting VAT

jilt Registered Posts: 2,903
It may be I can't see the wood for the trees but I'm struggling to get my head around this.

Previous accountant used Sage 50, I refuse to pay their prices and am using VT. Client uses cash accounting scheme for VAT. When posting my opening balances I posted the trade creditors and debtors figures to a suspense account intending on posting each individaul invoice for each account to the susupense account to cancel the first entries out, but the correct figure showing in the trade creditors/debtors in the TB when they're all on.

Have done this in the past and just posted the gross figure for those invoices as the VAT is already in the opening balances brought forward, but I can't do this cos its cash accounting and I need the vat amount to be shown.

Anyone put me out of my misery please? :001_unsure:


  • Jmann
    Jmann Registered Posts: 68 ? ? ?
    I believe vat supposed to be posted to deferred input and deferred output account for the outstanding purchase and sales invoices, however, I have to admit that I never entered opening balance for the cash accounting business!
  • jilt
    jilt Registered Posts: 2,903
    Yeah I thought there may be someway of getting the detors/creditors figures correct and the deferred taxes figures correct in one go but am now thing I post the invoices as gross and manually move the deferred VAT to the vat accounts if that makes sense.
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    We just migrated a cash accounting client to VT.

    We posted the TB as normal.

    Then posted the individual invoices with the VAT, but instead of posting them to the correct P&L account, we posted them direct to trade creditors as the "expense/sales" account (this does work).

    This then leaves the debtors and creditors accounts correct again, with the difference being the VAT which will also be in the (accruals based) VAT liability account.

    Journal between debtors and VAT (as you don't want it twice, but want the VAt on the invoices for cash accounting) and creditors and VAT to balance.

  • jilt
    jilt Registered Posts: 2,903
    Now I really have lost it. I'm posting sales invoices onto VT but nothing is showing up in the debtors control account??!!

    Ahh Jenni didn't see your post, thanks, I'll read, digest, reverse a few postings and hoepfully breath again!

    Thanks, I'll let you know how I get on.
  • jilt
    jilt Registered Posts: 2,903
    Ah VT yes I forgot you don't show a trade debtors figure but show a total of customer balances!!
  • Pixie1
    Pixie1 Registered Posts: 24 Dedicated contributor ? ? ?
    cash accounting - opening balances


    I read this post as I was struggling with the opening balances on a company I'm prep accs for.

    However still seem to be struggling with this?

    I have an opening trial balance:

    Trade debtors: £19,243.51 (this made up of sales £19,243.51, CIS £3,848.71, VAT (£3841.71))

    I loaded the opening balance as:
    dr trade debtors £19,243.51
    cr vat due £3,484.71
    dr hmrc cis £3,484.71
    cr op balances cntr £19,243.51

    But after reading this post i decided to reverse these entries and enter the individual outstanding sales invoices to make up the trade debtors figure. But seem to be getting one invoice too many showing in the vat return?? Is this because I have not yet set my year end dates?

    I have spent the last few hours going round and round over this one, and yet Im sure theres a simple solution??? Ive only just started using VT so its still new to me at the moment so apologies for the questions.

    If anyone could give me any further help with this, would be much apprciated.

    Many Thanks

    Pixie :001_unsure:
  • Pixie1
    Pixie1 Registered Posts: 24 Dedicated contributor ? ? ?
    Hi All,

    I have been a little side tracked lately and haven't been back on here. I notice I've not had any replies on the above?

    Can anyone help please?

    Any advice would be greatly appreciated.

    Many Thanks
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