This proposal is for an Option for VAT Statements and Returns to be based on 'Document Date' instead of 'Posting Date'.
There is a conflict between concepts around 'Month End' and 'VAT Tax Points'.
Month End - There is a Desire to 'Draw a line under' reported results, in that you don't want to post transactions back into prior periods. If you were to do so to be compliant with VAT, then re-running reports such as Trial Balance, Aged Accounts Payable etc will not match reported results.
VAT Tax Points - The principal problem is that Purchase Invoices are received after Monthly Management Accounts are reported, dated in the prior period.
While work arounds are possible, they are time-consuming and inefficient.
Note, the functionality will need to consider:
- Posting Dates used for closing VAT Entries in the Calc. and Post VAT routine
- Setting of Document Date for unrealised VAT transactions
- Whether a restriction should be applied to prevent Document Date being after Posting Date if this option chosen.