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Overpayments - Create Overpayments with Tax on for cash basis VAT

Ability for Xero to treat an overpayment with VAT on - I don't want to use a secondary debtors control account.

We have a client on the VAT cash accounting scheme and we have a number of overpayments which need to hit the debtors control account. When I run the VAT return, these amounts are not being captured for VAT purposes since there is no option to select a tax rate when using the overpayments option.

Should I treat these as prepayments, Xero will allow me to code these to a nominal account with VAT. However, the nominal code I need Xero to code to is the debtors control account, which you can only choose when selecting the overpayment option, (and as mentioned above this doesn't allow you to select a tax rate).

What I want to do is to treat this receipt as an overpayment which hits the debtors control account but also attracts VAT. The client is on the VAT cash scheme, so I believe the overpayments must be included for VAT purposes - I don't want to use the work around of using a second nominal for debtors and posting these receipts as prepayments.

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Gavin Grossman shared this idea  ·   ·  Report…  ·  Admin →
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  • Gavin Grossman commented  ·   ·  Report

    Ability for Xero to allow you to put a tax rate on an overpayment - (I don't want to use a secondary debtors control account).

    We have a client on the VAT cash accounting scheme and we have a number of overpayments which need to hit the debtors control account. When I run the VAT return, these amounts are not being captured for VAT purposes since there is no option to select a tax rate when using the overpayments option.

    Should I treat these as prepayments, Xero will allow me to code these to a nominal account with VAT. However, the nominal code I need Xero to code to is the debtors control account, which you can only choose when selecting the overpayment option, (and as mentioned above this doesn't allow you to select a tax rate).

    What I want to do is to treat this receipt as an overpayment which hits the debtors control account but also attracts VAT. The client is on the VAT cash scheme, so I believe the overpayments must be included for VAT purposes - I don't want to use the work around of using a second nominal for debtors and posting these receipts as prepayments. Sage can do this, come on Xero.....