How do I set up Mamut for use with the VAT cash accounting scheme?

article ID: 1005876


When installing Mamut Business Software for the first time, cash VAT accounting can be activated in the screen Financial Information by ticking the checkbox for VAT cash accounting scheme. All transactions such as raising invoices, posting purchase invoices, cash transactions, payments and VAT, will be calculated and transferred to the system's VAT return as per the accepted Cash VAT accounting principles.


Changing VAT accounting methods:


Please note that the system will only allow a change between Cash VAT and Standard VAT at the beginning of a VAT period, which has no postings. If postings have been made, the VAT scheme can be changed in the next VAT period which does not contain any postings.


How to change from Cash VAT to Standard VAT:

1. Select View - Settings - Accounting.
2. Click Cash VAT in the Module Settings tab.
3. Uncheck the VAT period from when Standard VAT accounting will apply.
4. Click OK once the desired periods have been selected and close the accounting settings window.

Please note the following limitations exist when using the Cash VAT option in the software:

1. Opening balance journals for outstanding invoices need to be entered as a separate journal for each invoice that is outstanding. The journal for the outstanding amount will need to have a line for the revenue or expense and also the VAT element.

2. The edit option within the financials to change a journals VAT treatment does not function.

3. A VAT return must be printed before the Detail VAT return is printed.

4. Pre payments registered on the Customer-/Supplier ledger. When you create the invoice we recommend that the original payment journal is reversed and the payment of the invoice is done from Journal entry/Ledger. By doing this, the new payment journal will automatically use the correct VAT handling. Alternatively, you can create the Invoice as a Cash invoice once the original banking entry has been reversed.

5. Payment journal where only Bank/Petty cash and sales-/purchase account is used: This must be entered using the Double entry column in Journal entry, please see example below. This is the only way to get the correct automatic VAT report code on the journal lines. Alternatively you have to manually choose the correct VAT report code on the journal lines.

For more detail about these limitations please contact support.

Query words: Cash VAT