How is VAT treated on Fees Ledger Opening Balances?

Items posted through Posting | Opening Balances do not carry any VAT details. If you wish to have VAT on items, most commonly with cash-accounting, post the entries through Posting | Ad-hoc postings (or Batches) selecting the correct posting type (e.g. Post your opening balances as invoices). Note: If you are cash-accounting and wish to see the VAT on any credit balance carried over you will have to post as a receipt with ‘Account for VAT’ ticked. Fees Options for Cash Accounting for Low Turnover Firm:

Open the IRIS Main Menu and click on IRIS Fees

Go to Options | Fees Ledger. Fees Ledger Options screen will be displayed.

In the General Tab, under the general options headings Low turnover firm (VAT Purposes) If your practice is accounting for VAT on a cash received basis cash accounting this option will automatically calculate VAT when a receipt is matched to an invoice. Not Low Turnover Firm, but Invoices are normally ‘Proforma’ If your practice is accounting for VAT on a cash received basis cash accounting, but not because firm’s turnover, ticking this option will perform the same function as Low turnover firm (i.e. for VAT purposes) above. With this option ticked, all invoices will be posted as Proforma. If your practice is cash accounting either Low Turnover Firm (i.e. For VAT Purposes) or Not Low Turnover Firm, but Invoices are normally ‘Proforma’ should be ticked. Posting Opening Balance:

Open the IRIS Main Menu and open IRIS Fees.

Go to Posting | Opening Balance and tick period posting is to made to. (e.g 2008/03 current period)

The Fees Ledger Opening Balances Postings screen will be displayed

Enter client details (e.g. A001), Select date (e.g. 25/07/2008) and enter an amount (e.g £100)

Tick DR to make a debit posting, click on Post and then click on Close To Update the Ledger (only required for WIP opening balances):

Open the IRIS Main Menu and click on IRIS Time.

Go to Pending Queue | Update Ledger and tick Opening Balances

Click on OK To produce a VAT receipt by accounting for VAT on the receipt:

Open Iris Fees from the IRIS Main Menu

Go to Posting | Ad Hoc Posting and then tick period posting is to made to. (e.g 2008/03 current period)

Tick Receipts

Enter client details (e.g. A001)

Enter Date (e.g. 18/07/2008)

Enter Amount (e.g. £100)

Tick the box ‘Account for Vat’

Click on Post and then click on Close To post a Proforma Invoice A proforma invoice, also described as a payment request note, is where you are accounting for the VAT on receipt of the money. If your practice is accounting for VAT on a cash received basis cash accounting this option will automatically calculate VAT when a receipt is matched to an invoice.

Open Iris Fees from the IRIS Main Menu

Go to Posting | Add Hoc Posting and then tick period posting is to made to. (e.g 2008/03 current period)

Tick Invoices

Enter client details .e.g A001

Enter Date 18/07/2008

Enter Amount £100

The box ‘Proforma’ will already be ticked.

Click on Post and then click on Close

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