Non Cash transactions appearing on Cash Basis tax reporting

I would like to add to discussion, that this problem is affecting VAT returns making them incorrect. Newly created and unpaid invoices are shown as paid and included in Cash Based VAT return, although no payment related to that invoice has been ever received.

This is incorrect.

Guys, please, can you look into this? This has an effect on taxes, I think it is quite serious.

Thank you.

@Solnce your above discussion points regarding cash basis tax transaction reporting to a new topic as they didn’t relate to the previously posted topic’s subject - a customers pre start date credit balances. Your point needs further testing

That is not true, incorrect reporting is a consequence of previously reported problem, which is already marked as bug.And I have added wrong VAT report to that discussion to keep misbehave of program in one place so that it could be checked after problem is solved. Do not understand why you decided to separate it and what do you want to test further, when it is already separated and tested by Tut.

I definitely did not test your report of a problem with cash basis tax transactions reporting. The issue I tested and reported as a bug was mishandling of payments against customer starting credit balances. My tests were for accrual basis accounting. I did not test cash basis performance, but don’t believe the problem would occur in that situation. My test case did not include any tax codes and did not examine any reports.

In fact, I was about to split your post into its own topic when I saw that @Brucanna already had.

If you see this as separate problem, let it be, but you do not need to reproduce another situation for this, just add VAT tax to transactions and make cash based VAT transaction report and you will see that is incorrect - non existing cash transactions are being included in report.

I just wanted to help you by saving time.

@Solnce, perhaps there has been a misunderstanding due to missing information.
In the above provided screenshots all the illustrated transactions fall within the tax report dates so couldn’t see any other topic connection, however I am now suspecting that the bank transactions (11,500 & 5,000) actually relate to undisclosed Customer / Supplier entered credit balances.

As you didn’t make any direct reference to the starting credit balance factor in the above, therefore the connection between the other topic’s bug and your provided data wasn’t obvious. Is this correct ?

Yes, but you need to provide full disclosure. we can’t assume or mind read missing information.

To not to tell story once again, I have posted it under main topic and clearly stated that this is addition to current topic:

It does not say, that it is a new problem.
But anyway, you have it as new topic :slight_smile:

Not sure where to post, split if you think this is another problem, but from my point this is continuation of the same story.

Now the customer has really paid that “already paid” invoice, it is being shown as overpaid on the invoice:

It looks ok on Transaction statement:

And not very ok on Customer Statements (Unpaid invoices):

@Solnce, while I am starting to understand your points after a lot of re-reading and re-calculating you have made this subject very confusing and difficult to follow, perhaps not for yourself.

If you had used the bug topic’s original figures (10,000 starting credit balance & 6,000 invoice) within your own illustrations then there would have been a natural flow of the data and clearer understanding of the points as everything would have been within the same context. Using different figures means one has to re-interpret the whole topic.

Sorry, did not mean do that.

Thanks for this.
I will try to be more consistent next time.