VAT Tax (V) - Voucher and Invoice Entry

When you enter a voucher or invoice with VAT tax, the system calculates the tax amount and creates a separate entry to the general ledger when you post the transaction. In accounts payable, you offset the VAT Recoverable Tax account when you receive payment from the tax authority. In accounts receivable, you offset the VAT Payables account when you pay the tax.

This example displays the AAI that the system uses and the tables and accounts that the system updates when you enter and post a voucher or invoice. The examples are for a taxable amount of 1,000 USD with a 10 percent VAT tax rate.

Example: Voucher Entry

Program	AAI*	Table	Accounts & Fields Updated	F0911 DR	F0911 CR
Standard Voucher Entry (P0411) Creates a voucher	.	F0411 . F0911	Taxable (1,000) Tax (100) Gross (1,100) Expense	. . . 1,000	.
Post General Ledger (R09801) Posts the voucher to the general ledger	FIN - PTxxxx FIN - PC	F0911	VAT Recoverable Tax AP Trade	100	. 1,100

Example: Invoice Entry

Program	AAI*	Table	Accounts & Fields Updated	F0911 DR	F0911 CR
Standard Invoice Entry (P03B11) Creates an invoice	.	F03B11 . F0911	Taxable (1,000) Tax (100) Gross (1,100) Revenue	.	. . . 1,000
Post General Ledger (R09801) Posts the invoice to the general ledger	FIN - RTxxxx FIN - RC	F0911	VAT Payables AR Trade	. 1,100	100

* DM - AAI = Distribution/Manufacturing AAI (F4950); FIN - AAI = Financial AAI (F0012)