Re: booking taxes when invoice is paid

[Chris Travers <..hidden..>]

On Sat, Feb 20, 2010 at 5:11 PM, Bert Vorenholt <..hidden..> wrote:

>
> In The Netherlands you actaully may choose which method you wish to use. The
> standard is accrual, but for (very) small organisations which only/mostly do
> (petty) cash based trading or if  you want to pay tax when you actually got
> payed (and receive a tax refund when you payed) for goods and services, cash
> based accounting is an option. Switching the method is only allowed after
> approval by the tax-authority and consist of a complex reconsiliation of tax
> related accounting entries at that moment.
>
> From an accounting (software package) point of view, the only differences
> are the moments of transferring the tax-amount to the tax liability account
> and for (income statements) reports the income and expenses should be
> accounted on the dates of payment.
>

I think the first thing is figuring out exactly what the requirements
are.  I don't believe this is supported out of the box but there may
be workarounds and/or customization possible.

One option would be to adjust from accrual values,   There are some
other possibilities as well

Best Wishes,
Chris Travers