VAT Entries on VAT Invoices
For correct VAT accounting and transferring VAT Amount from Sales/Purchase VAT Account to VAT Settlement account, added posting functionality on VAT Invoices.
Posting occurs if fulfills conditions:
- Sales VAT Invoice has External Status “Sent”, “Approved” or “Approved Correction”
- Purchase VAT Invoice has External Status “Approved” or “Approved Correction”
- VAT Invoice source is filled
Tax Setup Ge
In TAX Setup GE are fields, that provides filling of VAT Product Posting Groups by default in VAT Invoice lines.
VAT Business Posting Group fills according to Customer/Vendor VAT Business Posting Group.
| Field | Description |
|---|---|
| Adv. Posting Group 18% | Specifies the VAT Product Posting Group, that fills by default in Purchase VAT Invoice Advance, for lines with VAT Type "Standard" |
| Adv. Posting Group 0 | Specifies the VAT Product Posting Group, that fills by default in Purchase VAT Invoice Advance, for lines with VAT Type "0-Based" |
| Adv. Posting Group Exc. | Specifies the VAT Product Posting Group, that fills by default in Purchase VAT Invoice Advance, for lines that with VAT Type "Exempt" |
| Inv. Posting Group 18% | Specifies the VAT Product Posting Group, that fills by default in Purchase VAT Invoice, for lines with VAT Type "Standard" |
| Inv. Posting Group 0 | Specifies the VAT Product Posting Group, that fills by default in Purchase VAT Invoice, for lines with VAT Type "0-Based" |
| Inv. Posting Group Exc. | Specifies the VAT Product Posting Group, that fills by default in Purchase VAT Invoice, for lines that with VAT Type "Exempt" |
| Sales Adv. Post. Group 18% | Specifies the VAT Product Posting Group, that fills by default in Sales VAT Invoice Advance, for lines with VAT Type "Standard" |
| Sales Adv. Post. Group 0 | Specifies the VAT Product Posting Group, that fills by default in Sales VAT Invoice Advance, for lines with VAT Type "0-Based" |
| Sales Adv. Post. Group Exc. | Specifies the VAT Product Posting Group, that fills by default in Sales VAT Invoice Advance, for lines with VAT Type "Exempt" |
VAT Posting Setup
In VAT Posting Setup should be field settlement account that is used for overlaping VAT.
| Field | Description |
|---|---|
| VAT Settlement Account | Specifies the G/L account for VAT Settlement |
VAT Posting
| Field | Description |
|---|---|
| Post | Specifies posting action, that makes records in G/L entries and VAT Entries |
| Preview Posting | Specifies previewing entries, shows entries that will be recorded in G/L Entries and VAT entries after posting |
| Cancel Posting | Specifies cancel of posting, after this action, entries will be reversed and recorded in G/L and VAT Entries |
| Posting Date | Specifies date on which the transaction is registered in G/L and VAT entries |
| Posting Status | Specifies posting status for VAT Invoice. Before posting status is "Open", after posting invoice it changes into "Posted". After canceling posting, status changes again from "Posted" into "Open" |
On Posting Purchase VAT Invoice/Purchase VAT Advance, system fills Posting Date according to Registration Date, but changing manually is available.
System takes accounts from VAT Posting Setup with combination of VAT Business Posting Group and VAT Product posting Group from invoice lines.
VAT Business Posting Groups fills according to Vendor's posting group.
VAT Product posting Group fills by default from Tax Setup GE:
Purchase VAT Advance
Upon importing Purchase VAT Advance, System checks VAT Type in Invoice lines and fills VAT Product posting Group according to set VAT Product Posting Group in Tax Setup GE.
IF VAT Posting Type = "Standard", fills VAT Product Posting Group from the field "Adv. Posting Group 18%"
IF VAT Posting Type = "0-Based", fills VAT Product Posting Group from the field "Adv. Posting Group 0"
IF VAT Posting Type = "Non-Taxable", fills VAT Product Posting Group from the field "Adv. Posting Group Exc."
On Posting Purchase VAT Advance, system takes account from VAT Posting Setup:
Debit Account: VAT Settlement Account
Credit Account: Purchase VAT Unrealized Account
Purchase VAT Invoice
Upon importing Purchase VAT Invoice, System checks VAT Type in Invoice lines and fills VAT Product posting Group according to set VAT Product Posting Group in Tax Setup GE.
IF VAT Posting Type = "Standard", fills VAT Product Posting Group from the field "Inv. Posting Group 18%"
IF VAT Posting Type = "0-Based", fills VAT Product Posting Group from the field "Inv. Posting Group 0"
IF VAT Posting Type = "Non-Taxable", fills VAT Product Posting Group from the field ""Inv. Posting Group Ex."
On Posting Purchase VAT Invoice, system takes account from VAT Posting Setup:
Debit Account: Purchase VAT Account
Credit Account: VAT Settlement Account
Posting of Purchase VAT Invoice with assigned Advance
When there is assigned Purchase VAT Advance on Purchase VAT Invoice, system makes additional entries on VAT Invoice and takes assigned VAT Amount from "Assigned Advance VAT Ledger":
Debit account: Purchase VAT Unrealized Account
Credit account: VAT Settlement Account
Sales VAT Advance
Upon creating Sales VAT Advance, System checks VAT Type in Invoice lines and fills VAT Product posting Group according to set VAT Product Posting Group in Tax Setup GE.
IF VAT Posting Type = "Standard", fills VAT Product Posting Group from the field "Sales Adv. Posting Group 18%"
IF VAT Posting Type = "0-Based", fills VAT Product Posting Group from the field "Sales Adv. Posting Group 0"
IF VAT Posting Type = "Non-Taxable", fills VAT Product Posting Group from the field "Sales Adv. Posting Group Exc."
On Posting Sales VAT Advance, system takes account from VAT Posting Setup:
Debit account: Sales VAT Unrealized Account
Credit account: VAT Settlement Account
Sales VAT Invoice
Upon creating Sales VAT Invoice, System fills in lines VAT Business Posting Group from Customer and VAT Product Posting groups from Items (transferred from Sales Invoice)
On Posting Sales VAT Invoice, system takes account from VAT Posting Setup:
Debit Account: Sales VAT Account
Credit Account: VAT Settlement Account
Posting of Sales VAT Invoice with assigned Advance
When there is assigned Sales VAT Advance on Sales VAT Invoice, system makes additional entries on VAT Invoice and takes assigned VAT Amount from "Assigned Advance VAT Ledger":
Debit account: VAT Settlement Account
Credit account: Sales VAT Unrealized Account
VAT Entries that are posted on VAT Invoices has value YES in the field “Settlement”, otherwise NO.
There are some tools to control changes on posted Vat Invoices:
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In Purchase VAT Invoice/Purchase VAT Advance, upon Load Update, Load Invoice/Load Invoices, if External Status changes from "Approved" or "Approved Correction" to "Canceled", system checks Posting Status and if it is "Posted", restricts status update and makes related record in log.
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In Sales VAT Invoice/Sales VAT Advance, system restricts Canceling when Posting Status is "Posted", on clicking "Cancel" button shows message "Invoice is posted, Cancel Posting first".
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Upon Load update, Load Invoice/Load Invoices, if External Status changes from "Approved" or "Approved Correction" to "Canceled", system checks Posting Status, if it is "Posted", restricts status update and makes record in log: "Invoice is posted, Cancel Posting first"
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In Sales VAT Invoice/Sales VAT Advance, system restricts creating adjustment. When Posting Status is "Posted", on clicking "Create Adjustment" button, system shows message "Invoice is posted, Cancel Posting first".
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Upon Load update, Load Invoice/Load Invoices, if External Status changes from "Approved" or "Approved Correction" to "Primary", system checks Posting Status, if it is "Posted", restricts status update and makes record in log: "Invoice is posted, Cancel Posting first".