{"id":2645,"date":"2020-04-23T14:26:18","date_gmt":"2020-04-23T13:26:18","guid":{"rendered":"https:\/\/support.ospreyapproach.com\/?post_type=pracctice_guide&#038;p=2645"},"modified":"2024-07-10T12:42:26","modified_gmt":"2024-07-10T11:42:26","slug":"use-purchase-ledgers-with-vat-cash-accounting","status":"publish","type":"pracctice_guide","link":"https:\/\/ospreyapproach2022.wireddemo.co.uk\/support\/guides\/use-purchase-ledgers-with-vat-cash-accounting\/","title":{"rendered":"Use Purchase Ledgers with VAT Cash Accounting"},"content":{"rendered":"<div class=\"card\">\n\n    <p class=\"mb-2\"><strong>Who is this guide for?<\/strong><\/p>\n    <p class=\"mb-0\"><i class=\"far fa-user fa-fw mr-2\"><\/i> <strong>Accounts Users<\/strong> and <strong>Accounts Supervisors<\/strong><\/p>    \n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">This guide will take you through how to use purchase ledgers when set up to use cash accounting<\/h2>\n\n\n\n<p class=\"h2 wp-block-paragraph\">VAT Considerations<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are currently set up to use the Cash Accounting method of VAT but want to use Purchase Ledgers. In Osprey, the purchase ledgers are not designed to work with the cash accounting style of VAT. Firms who use the cash accounting VAT style do not become liable for VAT on purchases until the invoice is paid.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you always pay your supplier invoices in the same period as they are raised, the standard VAT Form produced in Period End reports should be accurate<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"553\" height=\"541\" src=\"https:\/\/support.ospreyapproach.com\/content\/uploads\/sites\/2\/2022\/01\/image-54.png\" alt=\"\" class=\"wp-image-44708\" srcset=\"https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2022\/01\/image-54.png 553w, https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2022\/01\/image-54-300x293.png 300w\" sizes=\"auto, (max-width: 553px) 100vw, 553px\" \/><figcaption class=\"wp-element-caption\">Navigate to Reports &gt; Financial Management &gt; Period End<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"769\" height=\"722\" src=\"https:\/\/support.ospreyapproach.com\/content\/uploads\/sites\/2\/2022\/01\/image-53.png\" alt=\"\" class=\"wp-image-44706\" srcset=\"https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2022\/01\/image-53.png 769w, https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2022\/01\/image-53-300x282.png 300w\" sizes=\"auto, (max-width: 769px) 100vw, 769px\" \/><figcaption class=\"wp-element-caption\">Select a Period at a quarter end and tick Period End Vat Form<\/figcaption><\/figure>\n\n\n\n<p class=\"is-style-warning wp-block-paragraph\">If the invoices are paid in later periods, this could affect your VAT return. There is a report which you can use to manually adjust your VAT return however.<\/p>\n\n\n\n<p class=\"is-style-info wp-block-paragraph\">Please ensure that payment terms are correctly set within your purchase ledger suppliers. The system will assume that invoices from a supplier who gives 30 days credit are not due until 30 days after they are posted, so will not necessarily appear in the same period as they were posted.<\/p>\n\n\n\n<p class=\"h2 wp-block-paragraph\">VAT Cash Accounting Purchase Inputs Report <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Navigate to the \u2018Reports\u2019 tab and select the option for Reports (New).<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"281\" height=\"310\" src=\"https:\/\/support.ospreyapproach.com\/content\/uploads\/sites\/2\/2019\/09\/image-447.png\" alt=\"\" class=\"wp-image-2647\" srcset=\"https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2019\/09\/image-447.png 281w, https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2019\/09\/image-447-272x300.png 272w\" sizes=\"auto, (max-width: 281px) 100vw, 281px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">Under the Report Type \u2018Accounting Reports\u2019 there should be a report called VAT Cash Accounting Purchase Inputs.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"155\" src=\"https:\/\/support.ospreyapproach.com\/content\/uploads\/sites\/2\/2019\/09\/image-448-1024x155.png\" alt=\"\" class=\"wp-image-2649\" srcset=\"https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2019\/09\/image-448-1024x155.png 1024w, https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2019\/09\/image-448-300x45.png 300w, https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2019\/09\/image-448-768x116.png 768w, https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2019\/09\/image-448.png 1197w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">Double click it to open the report.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using the available filters on the left-had side, run and print the report between the start and end dates of your VAT Quarter.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"424\" src=\"https:\/\/support.ospreyapproach.com\/content\/uploads\/sites\/2\/2019\/09\/image-449-1024x424.png\" alt=\"\" class=\"wp-image-2650\" srcset=\"https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2019\/09\/image-449-1024x424.png 1024w, https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2019\/09\/image-449-300x124.png 300w, https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2019\/09\/image-449-768x318.png 768w, https:\/\/ospreyapproach2022.wireddemo.co.uk\/content\/uploads\/sites\/2\/2019\/09\/image-449.png 1041w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">Fill in box 2 manually. This should be the totals of any purchase invoices still unpaid prior to the beginning of the VAT quarter you are completing now. You can run the same report again using a date range of:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From Date: Oldest unpaid purchase ledger invoice<br>To Date: End of last VAT Quarter and taking the box 3 totals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Work out the \u2018This Quarter VAT Return Input\u2019 totals using the formula shown on the report:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Box 1 \u2013 Box 2 \u2013 Box 3 = VAT Return figures<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you are currently set up to use the Cash Accounting method of VAT but want to use Purchase Ledgers. In Osprey, the purchase ledgers are not designed to work with the cash accounting style of VAT. Firms who use the cash accounting VAT style do not become liable for VAT on purchases until the invoice is paid.<\/p>\n","protected":false},"author":23,"featured_media":0,"template":"","categories":[51],"tags":[],"class_list":["post-2645","pracctice_guide","type-pracctice_guide","status-publish","hentry","category-using-vat"],"acf":{"display_as_dashboard_announcement":false,"announcement_title":"","announcement_type":"New feature","announcement_link_text":"Learn more","announcement_image":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Use Purchase Ledgers with VAT Cash Accounting - Osprey Approach Customer Support &amp; Training | Osprey Academy<\/title>\n<meta name=\"description\" content=\"This guide will take you through how to use purchase ledgers when set up to use cash accounting\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ospreyapproach2022.wireddemo.co.uk\/support\/guides\/use-purchase-ledgers-with-vat-cash-accounting\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Use Purchase Ledgers with VAT Cash Accounting - Osprey Approach Customer Support &amp; 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