VAT Calculations for Drafts and Direct Debits

For drafts and direct debits, the system calculates and records VAT information at payment time. For draft payments, the Receivables Update process generates accounting entries at the due date or discount date (depending on the selected system function). For direct debits, it generates the accounting entries at the due date, remittance date, or after bank reconciliation, depending on the cash clearing method.

If the associated item has a declaration point of payment, the following entries are generated: