Situation: at the end of a year (31-12) i have some unpaid invoices, both Debt and Credit.
So in Balance sheet Assets and Liabilities, there are a total amounts Debt and Credit.
But these two amounts are include VAT… is that common???
Normaly when i create Balance in old Xcell sheet, these Debt and Credit are exclude VAT.
As far is i understand accounting, all amouts in Balance- and P&L sheet are exclude VAT,
Is it a normal setting that Debt and Credit on Balance sheet are include VAT?
Or is there somehow a tag, or setting to change this?
I prefer amounts exclude VAT, because the Balance payable VAT is always correct within Manager.
I try to search in topic and guides, but i did not find an answer. Maybe overlooked.
I assume you are referring to sales and purchase invoices, although it is not clear which you might mean by either term. That would depend on whose perspective you write from.
Here, I assume you are referring to Accouts receivalbe and Accounts payable, but again it is not clear which term would apply to which account. It would be better to use the terminology of the program.
As @Mark wrote, yes!. You owe your suppliers the full amount of a purchase invoice, including VAT, not just the ex-VAT amount. And your customers owe you the full amount.
Excel is a spreadsheet program, not an accounting program. You can formulate any incorrect content you wish. That does not make it correct.
Not true. Some accounts, like Accounts receivable include VAT. Others, like Sales - inventory, do not. Sometimes, this depends on your local tax laws. Under a VAT regime, income and expense accounts would normally not include tax, but under a non-offsettable sales tax regime, expense accounts would include tax.
For the most part, basic principles of accounting are not covered by the Guides. Before using Manager, you need to understand double-entry accounting. A tool like Manager is only useful if you know what it is supposed to help you accomplish.
OK. I understand. However i think its strange… but that is an other discussion
Now having this knoledge, i can manage to complete the Balance en P&L.
Thank you for answer, i apreciate !
OK. I understand the basic accounting principle now. I respect that.
(i find it strange… but that is an other discussion
Now having this knoledge, i can manage to complete the Balance en P&L.
Thank you for answer, i really apreciate your clear feedback !
