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address problem with Vat cash accounting on re-allocation of payments

I have discovered that if you have allocated a payment to the wrong invoice and then re-allocate it to the correct one, and you are set up for cash accounting, then Kashflow will include the vat in the next vat return (even though the payment has already generated  the vat when the payment was made. So the result is that the vat is accounted for twice!!!

This is obviously a very dangerous situation and should at least generate a warning if you try to do this, however I do not see why this action should generate Vat as in all other accounting systems that I have used it is only a payment that generates vat for cash accounting.

  • Guest
  • Mar 16 2018
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  • Chris D commented
    28 Jun, 2018 09:32am

    I agree that there should be a warning to the user that reallocation of the payment is going to duplicate the VAT. As currently it is too easy to unallocate a transaction, without considering the implications of doing so.