Difference between revisions of "Cash - Accounting Method"
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(Created page with "Accounting Method Setting the correct Accounting method is important for accurate reporting of VAT implications. Optisoft Cash is able to follow three accounting methods. In...") |
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Optisoft Cash is able to follow three accounting methods. | Optisoft Cash is able to follow three accounting methods. | ||
Invoice Accounting: You are liable for the full VAT charge on the transaction regardless of whether you have received payment or not. | *Invoice Accounting: You are liable for the full VAT charge on the transaction regardless of whether you have received payment or not. | ||
Cash Accounting: You are only liable for the VAT charge on the value of transaction that you have received payment for, with the highest rated VAT-able item first. | *Cash Accounting: You are only liable for the VAT charge on the value of transaction that you have received payment for, with the highest rated VAT-able item first. | ||
Cash Plus Accounting: Subset of Cash Accounting method. VAT is charged on the Cost Price + Markup. This is very rarely used and is only then used by special arrangement with the Inland Revenue. | *Cash Plus Accounting: Subset of Cash Accounting method. VAT is charged on the Cost Price + Markup. This is very rarely used and is only then used by special arrangement with the Inland Revenue. | ||
If you are unsure on your accounting method this should be clarified with your accountant or VAT officer. | If you are unsure on your accounting method this should be clarified with your accountant or VAT officer. | ||
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Once you are certain of the accounting method in use, Optisoft needs to be set to this method correctly. | Once you are certain of the accounting method in use, Optisoft needs to be set to this method correctly. | ||
Click on the | *Click on the http://91.151.213.84/wiki/images/optisoft/shared/optisoftorb.jpg in the top left corner of the screen. | ||
Go to Maintain > Cash > Settings to open the Settings dialogue | *Go to Maintain > Cash > Settings to open the Settings dialogue | ||
http://91.151.213.84/wiki/images/optisoft/cash/cashsettings2/jpg | |||
On the right hand side select the radio button corresponding to the correct accounting method | *On the right hand side select the radio button corresponding to the correct accounting method | ||
Click | *Click http://91.151.213.84/wiki/images/optisoft/shared/savebutton.jpg to save the changes. | ||
You should then close and reopen Optisoft to ensure that the changes have taken effect. | *You should then close and reopen Optisoft to ensure that the changes have taken effect. | ||
Revision as of 16:14, 23 February 2012
Accounting Method
Setting the correct Accounting method is important for accurate reporting of VAT implications.
Optisoft Cash is able to follow three accounting methods.
- Invoice Accounting: You are liable for the full VAT charge on the transaction regardless of whether you have received payment or not.
- Cash Accounting: You are only liable for the VAT charge on the value of transaction that you have received payment for, with the highest rated VAT-able item first.
- Cash Plus Accounting: Subset of Cash Accounting method. VAT is charged on the Cost Price + Markup. This is very rarely used and is only then used by special arrangement with the Inland Revenue.
If you are unsure on your accounting method this should be clarified with your accountant or VAT officer.
Once you are certain of the accounting method in use, Optisoft needs to be set to this method correctly.
- Click on the
in the top left corner of the screen. - Go to Maintain > Cash > Settings to open the Settings dialogue
http://91.151.213.84/wiki/images/optisoft/cash/cashsettings2/jpg
- On the right hand side select the radio button corresponding to the correct accounting method
- Click
to save the changes. - You should then close and reopen Optisoft to ensure that the changes have taken effect.