Understanding Tax Explanation Codes and AAIs for Suspended VAT in Spain
To process suspended VAT, you must set up tax explanation codes to be included in suspended VAT processing. The system allows tax explanation codes V and VT for suspended VAT.
When you make a payment, post a draft, or manually run the Suspended VAT Generation program, the system uses the tax rate for VAT recoverable to post the recognized VAT to a VAT recoverable account.
You must set up the PTxxxx automatic accounting instructions (AAIs) for the GL offsets.
You must define the exception reclassification method for the combination of document type and tax area, if applicable. If the system does not find any exception method setup, it processes based on the default method for the country.