Turnover for a Sole-Trader

[Jockey]

When recognising turnover for a sole trader in the P & L should you record sales receipts or sales invoices if the client is on a cash receipts basis for VAT purposes?

I always thought that you recognised sales invoices rather than sales receipts but a client gave me his excel workings with details of purchase invoices and sales receipts rather than sales invoices.

Thanks

Jockey

 

[tenchi-fan]

this might help
[broken link removed]

 

[Gervan]

Definitely sales invoices. Doesn't matter whether you got paid within the year or not, it's a sale for that year.

 

[Joe_90]

Well,
VAT on a cash receipts basis is only a method of dealing with VAT it has nothing to do with the calculation of sales for accounting purposes.
The total of sales invoices less sales credit notes for the year is the turnover.