User guide

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Big Red Book Accounts v5
Recording VAT on Cash Receipts
Using Method 2 (with Allocations) Cash Receipts are entered as usual and allocated against Sales
Transactions.
Using Method 1 (without Allocation) details of receipts from customers are entered in the Cash Receipts
Book. If you have answered
Yes
to the '
VAT on Cash Receipts?'
option during set-up, a VAT Analysis
panel is displayed in the Cash Receipt entry screen, as below:
Cash Receipts entry screen using the VAT on Cash Receipts option
When entering a Cash Receipt you must analyse the
Gross
amounts (i.e. inclusive of VAT) in the VAT
Analysis. The sum of the amounts entered under the various VAT rates should therefore equal the amount
entered as Total earlier on the screen.
Note for Nominal users:
As all the figures used in the VAT Analysis in the Cash receipts book are gross,
postings made to a Nominal account are therefore also gross and the VAT control Account is not affected.
To post the VAT element to the VAT Control Account a Nominal Journal adjustment will have to made.
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