Moving DPS – FD from Cash Accounting to Accrual Accounting

Decide on a transfer date. It is recommended that this is the date of the end of your next VAT quarter, but not essential.

Cash Accounting flags the VAT on the PAYMENT, Accrual Accounting flags the VAT on the INVOICE. So if you have any part-paid Sales / Purchase Ledger invoices, we advise getting these paid in full prior to the switch. If you cannot settle in full before the time of the switch, you may need to credit note and re-issue invoices to the value of the part payment, then raise a separate invoice for the outstanding balance. If you decide against this practice, we can offer to flag specified items as Vatted or Not, but this will require ½ days of programming time and would be chargeable. If this is something you are considering, please reach out to us by raising a new case online and reference the title of this article.

We will need to run scripts on your database to flag all previous items in your database that were included as in a VAT Return as Cash Accounting, as in a VAT Return for Accrual Accounting. Please notify us in good time prior to your switch date.

Go to the DPS SQL Config, select the Company tab, then click Company Defaults. Untick ‘Use Cash Accounting. Click Save.

Restart DPS FD, and when ready Run and Post MTD VAT Return as usual. Items that are unflagged as being in a VAT Return will now pull through to the VAT Return, irrespective of whether or not they are paid.