VAT Accrual when Sales Recognition is Postponed

To generate the required journal entries for sales transactions for which sales recognition is postponed, you must run the VAT Accrual on Sales program after running the Invoice Print program. The VAT Accrual on Sales program writes journal entries for the VAT amount to the Transit VAT and VAT Payable accounts as shown in this table:

Account	Debit Amount	Credit Amount
Transit VAT	200
VAT Payable		-200

The credit account to which the system writes is determined by the tax rate area of the sales order line. The account that the system debits is determined by the account set up in the Transit VAT Account Setup program.

When the sale is recognized, you run the Sales Update and General Ledger Post programs to create the required journal entries. The Sales Update and General Ledger Post programs include Russian localizations that create the appropriate journal entries.

This table shows an example of the entries created:

Account	Debit Amount	Credit Amount	Source
Receivable	1200		Gross amount is generated by the General Ledger Post program.
Revenue		-1000	Taxable amount is generated by the Sales Update program.
Transit VAT		-200	VAT amount is generated by the General Ledger Post program. This entry reverses the amount written to the VAT Payable account by the VAT Accrual on Sales program.
VAT Revenue	200		VAT amount is generated by the Russian localization in the Sales Update program.
Revenue		-200	VAT amount is generated by the Russian localization in the Sales Update program.

The accrued tax is written to both the AA and CA ledgers for transactions in foreign currencies. Information for the transaction is included in the Sales Book for the period that includes the date on which the tax is accrued.