im seeing that the VAT report for a period is not correct, when i examine,
(1) the sales which are encashed are reported in VAT (Cash basis) and
(2) the sales which are not enchased still is in VAT (Acrual basis) , the same for purchase invoices possibly. i think this is not right. there should be one Report which will report all transaction of cash and acrual basis.
Reason being, if i take a report of VAT based on accrual this month, and then take a same arcual base report of same period after 2 months obviously the report will differ (because some invoices are paid by the time) which is not correct.
First, the cash versus accrual basis decision is not made for individual transactions. It is applied to the entire business.
Second, you do not switch back and forth between cash and accrual basis accounting. The decision is generally made only once, before beginning operation, because it entails a different philosophy on when and how income and expenses are recorded. Your accounts will not become automatically correct for another method just by changing the selection.
Agreed, fine we decided the accounting method as Acrual from beginning. but for that reason why my Tax Transaction Report (acrual basis) not fetching a sale Tax invoice. ( this when i checked, all invoices which are payment received are not showing in the (acrual basis) report) , when i cross checked checked it is reported in cash basis. This can not be, right.
You need to illustrate the problem you think you have with screen shots. This cannot be understood based on descriptions alone. Show the Edit screen of a transaction you think should be included but is not. Show the Tax Transactions report covering that period. Show the VAT Return Form for the same period.
Correct, if the invoice was dated within the period Jan to Mar but not paid until after Mar, then that invoice would appear in the Jan to Mar accrual report NOT in the Apr to Jun accrual report when the invoice was paid.
Thanks Bruc and Tut, both your replies are correct. it is satisfying and report is just fine. This issue can be closed.