{"id":21508,"date":"2021-08-20T15:09:51","date_gmt":"2021-08-20T14:09:51","guid":{"rendered":"https:\/\/bigredcloud.com\/?post_type=docs&#038;p=21508"},"modified":"2022-10-20T12:09:08","modified_gmt":"2022-10-20T11:09:08","password":"","slug":"recording-vat-on-cash-receipts","status":"publish","type":"docs","link":"https:\/\/bigredcloud.com\/en\/documents\/recording-vat-on-cash-receipts\/","title":{"rendered":"Recording VAT on Cash Receipts"},"content":{"rendered":"<div class=\"fusion-text\">\n<p>Using Method 2 (with Allocations), Cash Receipts are entered as usual and allocated against Sales Transactions in the accounting software.<\/p>\n<p>Using Method 1 (without Allocation), details of receipts from customers are entered in the Cash Receipts Book. \u00a0If you have answered\u00a0Yes\u00a0to the \u2018VAT on Cash Receipts?\u2019 option during setup, a VAT Analysis panel is displayed in the Cash Receipt entry screen, as below:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21509\" src=\"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/cash_rcpt_vat-300x234-1.jpg\" alt=\"\" width=\"300\" height=\"234\" \/><\/p>\n<p>When\u00a0 entering a Cash Receipt you must analyse the\u00a0Gross\u00a0amounts (<em>i.e.<\/em> inclusive of VAT) in the VAT Analysis.\u00a0 The sum of the amounts entered under the various VAT rates should therefore equal the amount entered as Total earlier on the screen in the accounting software.<\/p>\n<p><strong>Note for Nominal users:<\/strong>\u00a0 As all the figures used in the VAT Analysis in the Cash receipts book are gross, postings made to a Nominal account are therefore also gross and the VAT control Account is not affected. \u00a0To post the VAT element to the VAT Control Account a Nominal Journal adjustment will have to made.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Using Method 2 (with Allocations), Cash Receipts are entered as usual and allocated against Sales Transactions in the accounting software&#8230;.<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"doc_category":[211],"doc_tag":[],"class_list":{"0":"post-21508","1":"docs","2":"type-docs","3":"status-publish","5":"doc_category-vat"},"year_month":"2026-04","word_count":166,"total_views":0,"reactions":{"happy":0,"normal":0,"sad":0},"author_info":{"name":"apathak","author_nicename":"apathak","author_url":"https:\/\/bigredcloud.com\/en\/author\/apathak\/"},"doc_category_info":[{"term_name":"VAT","term_url":"https:\/\/bigredcloud.com\/en\/docs-category\/vat\/"}],"doc_tag_info":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Recording VAT on Cash Receipts - Big Red Cloud<\/title>\n<meta name=\"description\" content=\"Using Method 2 (with Allocations), Cash Receipts are entered as usual and allocated against Sales Transactions in the accounting software. Using Method 1\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bigredcloud.com\/documents\/recording-vat-on-cash-receipts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Recording VAT on Cash Receipts\" \/>\n<meta property=\"og:description\" content=\"Using Method 2 (with Allocations), Cash Receipts are entered as usual and allocated against Sales Transactions in the accounting software. 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