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T
tombola
March 16, 2023
Question

VAT report using cash deposits in accrual reporting

  • March 16, 2023
  • 1 reply
  • 0 views

I am in the process of seting up for the first time. I have linked to my bank and loaded transactions. I ran a VAT detail report and found that it has included the deposits into my bank. I have set it up as accrual basis accounting (i.e. not cash) so there should be nothing in the report as I have yet to enter any invoices. Is this normal? It may be important that I am in a fixed rate scheme.  It is quite hard to work out but I think the report includes payments for invoices raised in a previous VAT period and does not include invoices raised but not paid duting the reporting period.

1 reply

G
GeorgiaC
March 16, 2023

Hi tombola, thanks for joining the Community - when on the accrual basis, any transaction with a VAT code applied will post to the VAT return/VAT reports and default VAT accounts (VAT control when unfiled, and VAT suspense once filed). This is regardless of the transaction type or payment method selected. Are the deposits relating to payments from invoices from a previous period that have already been filed with HMRC? 🧐

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