Understanding Register Types and Classes

To report on summarized VAT, you must set up register types and classes to track and report VAT tax in a summarized format. You then create a link between the register types and classes, and the appropriate type of transaction (document type). You use the Register Type & Class Setup (P74091) program to create the links.

You specify different register classes for sales and purchases. Register types are subsets of register classes. For example, the register types for a sales register class might include:

• Sales within Italy

• Sales within the EU

• Sales outside the EU

When you link register types and classes to document types, you establish and maintain the relationships among document types, VAT rates, register types, and classes. You can use these relationships to create summarized VAT reports.