All the reports are cash based accounting. I created a new business and I created one transaction sales and purchases and it seems to be the correct amount now! I think that I am going to leave that issue for the moment, because I suspect that as I have been creating dummy transactions to see how the program works, it is probably to do with the fact that I have sales for goods that have never been bought etc. And some of those goods have no VAT etc. This may be the problem, but I think it appears to be pulling the wrong fields!
However, I encountered something rather interesting when I created the VAT Test business. Firstly, you can add a VAT registration number for clients but not for suppliers. I am not sure if you are intending to add VAT reg numbers for suppliers in the future, or if you put it for clients when you meant for suppliers. For TAX reporting purposes its usuful to have the Suppliers VAT number, I don’t know when the VAT man would ever be interested in whether the client is VAT registered?
Secondly, if I create a sales quote using a sales on inventory item it posts the amount correctly. If I copy that to a sales order, all is fine although it changes sales of inventory to inventory on hand. When I copy the sales order to a purchase order, it changes the name from sales on inventory to inventory on hand, but it does not reflect the inventory on hand purchase price, it reflects the sale price!
I have sent you the data file for both businesses, if you want to look at the wrong VAT amound in the first business which is called New and if you want to look at the inventory on hand and sales of inventory to see if I am doing something wrong. Thank you.