Help: VAT accounting, assets bought on credit


A

adrian.stock

Thu, 24 July 2003, 1.49h GB time


Hi, all,

I am asking this question on behalf of my bookkeeper colleague in this
tiny company. She has just upgraded to Quicken XG, is impatient and
finds the change-over from a much older version hard to make.

We have bought a couple of computers on interest-free credit for one
year. No deposit has been paid and no instalments will be paid until
the end of that year.

We want to re-claim the VAT element on the date of the purchase
(invoice date), rather than on the date when the cash will be paid.

I believe this method of accounting for VAT is called 'accrual
accounting' as opposed to 'cash accounting'.

The bookkeeper (let's call her Joan) has set up a liability account
for the money owed to the computer shop. She tells me that Quicken
refuses to let her put the VAT on the VAT control account.

(When she tried to trick Quicken by running the transaction over a
bank account [even though no money had been paid], the VAT went
through correctly.)

I believe that her problems have something to do with the distinction
between cash-accounting and accrual accounting. Could it be that
Quicken is by default set up for cash-acounting and therefore prevents
VAT being 'charged' in combination with a liability account?

If so, could she solve the problem by making a change somewhere in the
Preferences or Options to allow accrual accounting? Where in the
preferences (...) can this change be made?

--------------------------------

Joan also tried to set up a bank account (current) for a foreign bank.
The name of the bank was rejected by Quicken as something like
'Unknown financial institution'. This sounds unreasonable. I should
be able to call a bank whatever I like. What went wrong? What can
she do about it?

---------------------------------------

Finally, I have been looking in vain for an online forum for Quicken
users. Can someone please give a URL?

-----------------------------

Many thanks for your help.

Please reply by email as well as to the group to make it easier for me
to spot the reply. Thanks again.

Adrian, Blackburn, Lancs, UK

Email: (e-mail address removed)
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top