I have a customer here in the UK who are doing cash accounting (VAT posted at time of receiving or paying). There's an issue with receipts and payments made by cheque. If the cheque number has been entered into the receipt or payment, no VAT is posted.

There is a comment in DoBookIPVAT:

if (IPrwp.ChequeNr>0) then begin //vat posted when check cleared
testf = false;
end;

This led me to believe the VAT would be posted once the receipt was reconciled, so I tried that but it did not update the transaction, nor create a new one.

How is the VAT supposed to be posted for cleared cheques? Otherwise I will need to find and remove all the cheque numbers, and unOK and reOK all these records, which is quite a big job.

Another issue is that this concept is wrong for the UK. According to HMRC:


"If you are paid by cheque: you receive payment on the date you receive the cheque, or the date on the cheque, whichever is later."