Understanding the Process for Reclassifying Fiscal Credit

When you enter a voucher that requires a credit invoice, the system modifies the tax area of the voucher and replaces it with a similar percentage tax area that allocates the tax to a temporary value-added tax (VAT) credit tax account. The tax cannot be reported to the tax authority until the tax is reallocated to the final VAT credit tax account.

The AP Credit Invoice V.A.T. Restatement program (R76A0052) debits the temporary VAT credit tax account and credits the final VAT credit tax account. However, if the temporary and final VAT credit tax accounts are the same, no transferring entry is created.

Note: The original and replacement tax area must be set up in the AP Tax Areas Relationship program (P76A25). The system uses the PTxxxx AAIs that are associated with these tax areas to identify the temporary and final VAT credit tax accounts.

The AP Credit Invoice V.A.T. Restatement program also updates the status of the credit invoice using the RECLASIF event. The new status enables you to include these vouchers in the tax reports that are sent to the tax authority. You must accept or reject credit invoices either before or after you reclassify the fiscal credit.

The fiscal credit reclassification must occur within the fiscal period under which the voucher falls, or you lose the right to appropriate the money and must reclassify it to a loss account.

You should use data selection to select vouchers with a payment status that may be reclassified. For example, you might select vouchers with payment statuses for registered receipts or rejection due to cash payment.