Verifying VAT Tax Setup
Enter Taxable Invoices
Enter an invoice for a taxable customer. Save the invoice and ensure that you can navigate to the Tax window for the invoice lines to view the tax code, tax rate, and amount. You should then navigate to the Revenue Accounts window and confirm that the tax line is posted to the correct General Ledger account.
If you are implementing Oracle Order Entry, enter an order and confirm that the VAT amounts are displayed in the payment information region.
Enter Zero Rated Invoices
Assign a Tax Code with zero rate to a customer or customer site. Create an invoice for this customer, including a taxable line item. Save the invoice and verify that the system generated a zero rated tax line.
Interface Zero Rated Invoices
Use AutoInvoice to import an invoice that includes a zero rated tax code. See: Using AutoInvoice.
Using the Transactions window, verify that the tax amounts on the generated tax lines are zero. See: Entering Transactions.
See Also
Implementing Value Added Tax
Calculating Tax
VAT Reconciliation Report
