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Thread: Quickbooks 2012 - terms and VAT bug

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    Quickbooks 2012 - terms and VAT bug

    Quickbooks 2012 users beware:
    If you use a terms code that contains a discount, Quickbooks discounts the VAT on the invoice. This means, besides under charging your customers, your VAT will be incorrect.
    As an example, if your terms code contains 2.5% discount if paid before a date, Quickbooks will calculate the VAT at 11.5% (14-2.5)

    Quickbooks SA and the developer are aware of the problem and will let users know once there is a solution.

    Whatever that means...

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    Dave A (08-Nov-12)

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    I've found QuickBooks' discount settlement routine a bit tricky to set up right at the best of times and have always preferred to manually pass a credit note instead.

    Maybe it wasn't me being dumb after all
    The trouble with opportunity is it normally comes dressed up as work.

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    Yes, the idea of 30 days after invoice as opposed to after statement is problematic, but I have found a way to make that work in the traditional way.

    But this is a real silly error and applies no matter how you configure the terms; if there is discount in those terms, the VAT will be wrong.

    When you consider how difficult it is dealing with an SD14 return as it is, this is really going to be challenging.

    As a matter of interest it does the same thing with bills, but it is immediately detected because the entry is out of balance. With sales on the other hand, you don't start by entering the total sale value; you rely on the system and hence it can go undetected.

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