Understanding How to Automatically Release Suspended VAT

When you set up your system for Russian localizations, you use the Russian VAT Release Type Setup program (P74R4000) to identify the document type/tax rate areas combinations that must be processed using the Russian localizations for suspended VAT. If the document types and tax rate areas are set up in the Russian VAT Release Type Setup program, the system processes the vouchers using the suspended VAT localizations. If the document type and tax rate areas are not set up in the Russian VAT Release Type Setup program, the system does not apply the suspended VAT process to the vouchers whose document type and tax rate areas are not set up.

When you set up the document type/tax rate area combinations, you also specify if voucher lines that include the combination are automatically or manually released. When you run the General Ledger Post program for vouchers with suspended VAT, the system also runs the Automatic VAT Process program. The Automatic VAT Process program includes processing option values that the system uses to write the journal entries for the VAT that is automatically released to an Actual VAT account. The system also writes records to the Tax on Hold table (F74R410) to adjust suspended VAT amounts and writes an entry for the released amount to the Tax Released table (F74R420).