Does the software handle VAT Cash Accounting?
The system can indeed be set up for the VAT Cash Accounting scheme. From the System drop down menu, select Nominal Ledger, then Defaults and Variables. On the left hand side of the form, there is a option ‘VAT accounting scheme’. Set this to ‘Cash Accounting’. When you run a VAT period end report, only VAT on invoices paid will be reported. You should be aware, however, that if an invoice is part paid, the whole VAT amount will be reported (claimed/paid). This is a limitation of the software, in that a transaction can only appear on a VAT report once. If you know in advance that an invoice is to be part paid, you may want to consider creating two invoices, one for the amount to be paid, and one that will remaining outstanding.
