VAT Exception Report
Use the VAT Exception Report as part of your VAT reconciliation to review any Receivables subledger transactions which meet one or more of the following VAT exception criteria:
- The transaction has item lines with no accompanying tax lines.
To accommodate most VAT requirements, every miscellaneous cash receipt should have a tax code associated with it and output VAT liability should be manually accounted for using the VAT Reconciliation Report. You can enforce this business rule within Receivables by setting the Tax Calculation flag (in the Transaction Types window) to 'Yes' for every transaction requiring VAT calculation.
- The transaction has item lines that reference general ledger tax accounts.
Only tax transaction lines should be posted to tax accounts in the general ledger.
- The transaction is a Discount that references general ledger tax accounts.
Only tax transaction lines should be posted to tax accounts in the general ledger.
- The transaction is an Adjustment that references general ledger tax accounts.
Only tax transaction lines should be posted to tax accounts in the general ledger.
- The transaction is a Miscellaneous Receipt that references general ledger tax accounts.
Only tax transaction lines should be posted to tax accounts in the general ledger.
- The transaction is a Miscellaneous Receipt which has no tax code. To accommodate most VAT reporting requirements, every VAT taxable transaction must include a tax line even if the value of the tax line is zero.
- The transaction is an Adjustment of type Tax.
Tax only Adjustments are not advised in a VAT reporting environment because they are generally not accepted as valid reductions to your VAT liability.
Attention: Chargebacks and Commitments are created without tax lines and will always appear on the VAT Exception Report.
You should correct every transaction on this error report or manually calculate the impact to your return before completing your VAT reconciliation.
Report Parameters
You can submit the VAT Exception Report from the Submit Requests window. The VAT Exception Report is ordered by Transaction Class, Invoice Number, Customer Name and GL Date and displays each transaction in its entered currency.
GL Date Low/High: The GL date range for the period you wish to review. The default values for GL Date Low and High parameters are the start and end dates of the most recent accounting period.
Transaction Date Low/High: The transaction date range for the period you wish to review. The VAT Reconciliation Report defines the transaction date for each class of transaction as follows:
- For Invoices, Credit Memos and Debit Memos the report will use the transaction date of the transaction.
- For Miscellaneous Cash Receipts the report will use the receipt date.
- For Discounts, Adjustments and Cash Applications, the report will use the transaction date of the associated invoice.
Posting Status: You can report on Posted, Unposted, or All transactions.
Column Headings
Line Number: This column shows the transaction line number, but is empty for the following transactions:
Transaction Amount: This column shows the amount of the transaction in the entered currency.
Status: This column reports the reason the transaction is an exception. This column displays the following standard warning messages :
The transaction has item lines with no accompanying tax lines.
The transaction is not a tax transaction, but it references general ledger tax accounts.
The transaction is an Adjustment of type Tax.
See Also
VAT Reconciliation Report
Customers with Invoices at 0 VAT and no VAT Registration Number
VAT Register Report
Tax Code Listing
Running Standard Reports and Listings
Receivables Standard Reports and Listings
