VAT Accounting Invoice

You generate a VAT accounting invoice to show the VAT amount on goods or services. You generate this invoice from the JD Edwards EnterpriseOne Accounts Receivable system after you receive the prepayment from your customer. When you generate this invoice:

• Include a line for the VAT payable.

  This line shows the VAT amount as both the gross amount and the tax amount. Assign a tax rate/area to this invoice that is set up for VAT. You also assign a tax explanation code that you set up to account for VAT.

• Include a line for a reversing entry for the VAT payable.

  This line shows the amount of the VAT payable as a negative gross amount, and shows 0 (zero) as the tax amount. Assign to this line a tax rate/area that does not calculate taxes.

• Reference the prepayment invoice.