Understanding the Monitor VAT Ceiling Program

When you run the Monitor VAT Ceiling (R74416) program, the system calculates the total amount of vouchers that has been processed during the period that is specified in the processing options. To determine whether you are still within the VAT ceiling limit, the system subtracts the total invoices from the initial VAT ceiling limit.

When the total amount of the invoices has reached the threshold percentage that you specified in the processing options, the system sends a workflow message to the person who is responsible for notifying suppliers to include VAT on their vouchers.

You should run the Monitor VAT Ceiling program frequently in proof mode to monitor the VAT ceiling. During any given month, the Received not vouchered amount should steadily decrease. The amounts that are obtained when you run the report in proof mode give an estimate of the use of the VAT ceiling during the specified period.

You run the Monitor VAT Ceiling program in final mode to record the month's progress toward the limit in the F74413 table.

You can use the Review VAT Ceiling Limits - Italy program to view the information that is provided by the Monitor VAT Ceiling report.

Important: Because the VAT Ceiling Limits - Italy table is updated only when you run the Monitor VAT Ceiling report in final mode, you should run the Monitor VAT Ceiling report in proof mode rather than using the Review VAT Ceiling Limit program if you want to check VAT ceiling information at times other than when you have just run the Monitor VAT Ceiling report in final mode.