The AP VAT Reconciliation Detail report helps you produce monthly, quarterly, and annual German VAT declarations. The report provides a detail listing of all transactions posted to each VAT account in General Ledger during the General Ledger period range that you specify. The transactions are grouped by VAT code and supplier and selected by General Ledger date.

The report includes details such as the transaction amount and VAT entered on the original invoice, as well as any discount taken upon payment of the invoice.

The report pro-rates the discount on the transaction amount and the VAT in the same proportion as the non-tax: tax lines on the invoice. The accounting distribution of the discount taken depends on the value that you selected for the AP System Option Discount Distribution Method. If it is set to Prorate Expense, the discount is pro-rated across all invoice distribution lines. If it is set to Prorate Tax, a proportion of the discount is pro-rated across the tax distribution lines and the remaining discount is credited to the Discount Taken accounting flexfield.

The AP VAT Reconciliation Detail report calculates the expected VAT based on the VAT rate and the original invoice cost, and displays the difference between this calculated value and the actual VAT entered on the invoice. The report prints a supplier-level total for transactions that relate to the specified VAT code, as well as a total for all VAT codes that you select.

For each VAT code, the report shows the balance of the VAT account in General Ledger, and identifies any difference between the amount posted to General Ledger and the VAT in the AP transactions. The difference is split into a calculation difference and other differences. The other category would be used, for example, where a manual journal entry was made to the General Ledger VAT account, or where a non-tax line on an invoice was posted to the VAT account.

The report is produced only in the functional currency for your set of books. Foreign currency invoices use the exchange rate applied to the invoice when it was entered into Oracle Payables.

The AP VAT Reconciliation Detail report includes a separate Exception Listing. AP invoice distribution lines that affect a VAT account in General Ledger print on the listing when either of the following is true:

The invoice line type is not tax or the VAT code is null, and the General Ledger accounting flexfield assigned to the line is a tax account combination.

The VAT code is null and there is no other tax line in the invoice.

Warning: If you run the report after you perform a General Ledger revaluation for the selected accounting flexfields, the reported General Ledger Balance may have been changed by the revaluation. Before you make a correcting journal for any differences, the revaluation content of the General Ledger Balance should be established and not included in the correcting journal. General Ledger revaluation journals are created as reversing journals in the following period.