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Using TurboCASH

 







TAX
PAYMENTS BASED VAT SETUP
  
If you are registered for VAT on the Payments Based - VAT Accounting Basis it will be indicated on your VAT registration certificate. If you are registered on the Payments Basis, you must pay the tax when you receive the payment or part of the payment. On the other hand you may only claim the Input Tax for the amount or part of the amount that you have physically paid for your purchases or expenses.

TurboCASH defaults to the Invoiced Based method. You need to change the parameters in the Setup - System Parameters - Company Information menu option to change your Set of Books to work on the Payments Based - VAT Accounting Basis.

Before you can change to the Payments Based Accounting basis for VAT you need to create a Due Account or VAT Payments General Ledger Account. (Note that this account must be created in the Edit - Accounts - General Ledger as a Sub-account of your VAT accounts). This account will be used to record the Output VAT, which must be paid when the payment is received and to record the Input VAT when the payment is made. This account can be briefly illustrated as follows:
  1. Receipts Batch - When a Payment is received and entered in the Receipts Journal, an Open Item Selection screen listing all the Invoices and transactions for the selected Debtor account. You need to select and link a specific transaction to this receipt. TurboCASH will automatically calculate or apportion the Output VAT amount (according to the VAT percentages charged on the original invoice or transaction) and generate balancing entries for the VAT amount to this due account. When the transaction is posted to the ledger, the balancing entries will debit the Output Tax account and credit the Due account.

     

  2. Payments Batch - When a Payment is made and entered in the Payments Journal, an Open Item Selection screen listing all the Invoices and transactions for the selected Creditor account. You need to select and link a specific transaction to this payment. TurboCASH will automatically calculate or apportion the Input VAT amount (according to the VAT percentages charged on the original purchase or other transaction) and generate balancing entries for the VAT amount to this due account. When the transaction is posted to the ledger, the balancing entries will debit the Due account and credit the Output Tax account.
To change the Tax to the Payments Basis VAT:
Click on Setup - System Parameters - Company Info menu option or press the key on your keyboard. You may also press the and and and keys on your keyboard. The Company Information screen will be displayed.
Click on the button. The Company Information - Options screen will be displayed.

Title bar. Click to enter or edit Company Address, Contact, information and Registration numbers. The Options button will allow you to set or edit a Logo, Windows Default Date and Currency Format. Select Invoice or Payments Based, depending on your VAT registration. This field will only be activated if the Payments Based Tax Method is selected. When activated the Lookup Facility for Accounts will be displayed on which you need to select the Due Account. Select Screen, Printer, File, E-mail or Fax. Select or enter the percentage in which reports should be displayed when send to the screen. Tick to have the Company Logo displayed on documents, statements, etc. Click to set the Windows Date and currency format. Click to save changes and to exit this screen. You may need to first set the date and currency format before clicking on this button. Click to Close or exit this screen without saving any changes. Click to Close or exit this screen without saving any changes. Right-click to select the Clear, Load from File and Paste commands to remove or insert a Picture into this field.
Select the Payments Based Tax method. The following Confirmation message will be displayed:


Read this message carefully and click on the button, if you agree. The following Confirmation message will be displayed:


Read this message carefully and click on the button, if you agree. TurboCASH will convert all debtors and creditors accounts from the Balance Brought Forward ageing to the Open Item Debtors and Creditors accounts. Once you have converted to the Payments Based accounting basis for VAT, the Open Item Account field of the Edit - Accounts - Debtors (Accounting Information tab) and on the Edit - Accounts - Creditors (Accounting Information tab) will be deactivated. The Due Account field will be activated.
Select the Due Account on the Accounts search or lookup facility.
Click on the button to save your changes and to close or exit this screen.