Understanding Journal Entries for VAT on a Cash Basis

Run the VAT Payments Update program (R74U0445) to:

  • Update the Taxes table (F0018) based on both the VAT amounts form the voucher and the cash payment made against that voucher.

    Partial payments are pro-rated.

  • Create a journal entry record to move the VAT amount from a suspense account to an actual VAT account.