VAT + Use Tax (B) - Voucher Entry

When you enter a voucher using tax explanation code B for VAT + use tax, the system calculates the use tax amount and includes it in the expense distribution. When you post the voucher, the system creates entries to the:

• Use Tax Payable account, which you offset when you pay the tax authority

• VAT Recoverable Tax account, which you offset when you receive payment from the tax authority

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. The example is for a taxable amount of 1,000 USD with a 7 percent VAT and 3 percent use 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 (1,070) Expense	. . . 1,030	.
Post General Ledger (R09801) Posts the voucher to the general ledger	FIN - PT FIN - PTxxxx FIN - PC	F0911	Use Tax Payable VAT Recoverable Tax AP Trade	. 70	30 . 1,070

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

Note:

If you use tax-on-tax calculations, which you specify in the tax rate/area by activating the Compound Tax field, the system uses this formula to calculate the tax amount:

(Taxable + VAT) x use tax rate = Tax

(1,000 + 70) x .03 = 32.10