Error in VAT calculation (cash accounting) for expenses
Problem reported by David Foster 7 years ago
I believe there is an error in the way that VAT is calculated in Clearbooks. We do our accounts on transaction date of invoice, but VAT on cash accounting. When calculating VAT on this basis, normal bills are used in the VAT calculation for a particular quarter based on the date they are paid - I've checked and that works fine. However, expense claims are used in the VAT calculation based on the date of invoice, NOT the date they were actually paid out. This seems wrong to me.
Say an employee makes a claim date 15th Jan (say he drives somewhere on Jan 15). That claim is actually paid in early February. Since our VAT quarter ends Jan31, that claim should appear in next quarter's VAT calculation. But it would actually appear in this quarter's which I believe to be a wrong treatment.
You can see examples in our account. EXP00035 is dated 30 Nov, became BIL000240 dated 30Nov, was paid 2 Dec (payment ID 314). But it appears in November's VAT control account.
Please can you investigate.