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Entering 2k+ purchases on flat rate scheme

Question asked by Charmaine Grieger 5 years ago

VAT return does not include invoices for purchases of over 2K on which I'm entitled to claim back VAT. Other users have suggested changing account code to "fixed asset" but this makes no difference. Has anyone else had this problem, and managed to resolve it?

7 Replies

At the moment if you update an existing account with a fixed asset account type it will not be treated as a fixed asset on a FRS VAT return. I will raise this as a problem with our technical team, however you could create a completely new account under the fixed asset account type and update any appropriate transactions using this new fixed asset account.

I think accounts are only treated as fixed assets if they are in the system generated 7001 code number sequence if that makes sense.

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Hi Charmaine

I've just tried this in the demo account and it works fine.

Have you paid the invoice? (if you're using VAT cash accounting)

At the moment if you update an existing account with a fixed asset account type it will not be treated as a fixed asset on a FRS VAT return. I will raise this as a problem with our technical team, however you could create a completely new account under the fixed asset account type and update any appropriate transactions using this new fixed asset account.

I think accounts are only treated as fixed assets if they are in the system generated 7001 code number sequence if that makes sense.

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Sorry, I presumed the OP meant changing the nominal account within the bill, not physically changing the account type via Settings > Codes > All.

No worries - I had to check the account to see the problem :)

So basically when the OP's read from other users that she needs to change the account to a fixed asset account she's gone too far - if she just goes into the bill and changes the account dropdown to an existing fixed asset account she'll be good to go.

Yep the OP should be good to go if they update the bill to one of the default fixed asset account codes (or create a new account under fixed assets and updates the bill with this).

What happened was that the OP edited an existing account and updated the account type to fixed assets. The asset now shows under the fixed asset account type but hasn't changed the numbering sequence e.g:

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The system should either prevent you from doing this or (probably preferably) update the code number so it is properly treated as a fixed asset on an FRS return (and recognised by the fixed asset tool).

Success! Changing account code on individual bills worked. Thanks.

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