VAT Entries on VAT Invoices

For correct VAT posting and transferring VAT Amount from Sales/Purchase VAT Account to the VAT Settlement account, posting functionality has been added to VAT Invoices.

Posting occurs if the following conditions are met:

• the Sales VAT Invoice has External Status “Sent”, "Sent Correction" "Primary", “Approved” or “Approved Correction” (Cancel Posting is allowd for all those statuses, additionaly when status is "Deleted", or "Rejected")
• the Purchase VAT Invoice has External Status “Approved”, "Primary" or “Approved Correction”,
• the VAT Invoice source is filled out.

Revenue Service Integration Setup

On 'Revenue Service Integration Setup' page , there are fields that provide filling out of VAT Product Posting Groups by default in VAT Invoice lines:

Revenue-Service-Integration-Setup.md

VAT Business Posting Group is filled out according to Customer/Vendor VAT Business Posting Group.

VAT Posting Setup

In VAT Posting Setup, there should be the field of the settlement account used for overlapping 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 cancellation of posting; after this action, entries will be reversed and recorded in G/L and VAT Entries.
Posting Date	Specifies the date on which the transaction is registered in G/L and VAT entries.
Posting Status	Specifies posting status for the VAT Invoice. Before posting, the status is "Open"; after posting, the invoice changes its status to "Posted". After canceling posting, the status changes again from "Posted" to "Open".

On Posting Purchase VAT Invoice/Purchase VAT Advance, the system fills out the Posting Date according to the Registration Date, but changing manually is available.

The system takes accounts from VAT Posting Setup with combination of VAT Business Posting Group and VAT Product Posting Group from the invoice lines.

VAT Business Posting Groups are filled out according to the Vendor's posting group.

VAT Product Posting Group is filled out by default from Revenue Service Integration Setup.

Purchase VAT Advance

Upon importing Purchase VAT Advance, the system checks VAT Type in Invoice lines and fills VAT Product Posting Group according to the VAT Product Posting Group set on Revenue Service Integration Setup.

IF VAT Posting Type = "Standard", the VAT Product Posting Group is filled out from the "Adv. Posting Group 18%" field.

IF VAT Posting Type = "0-Based", the VAT Product Posting Group is filled out from the "Adv. Posting Group 0" field.

IF VAT Posting Type = "Non-Taxable", the VAT Product Posting Group is filled out from the "Adv. Posting Group Exc." field.

On Posting Purchase VAT Advance, the system takes the account from VAT Posting Setup:

Debit Account: VAT Settlement Account

Credit Account: Purchase VAT Unrealized Account

Purchase VAT Invoice

Upon importing a Purchase VAT Invoice, the system checks the VAT Type in Invoice lines and fills out the VAT Product Posting Group according to the VAT Product Posting Group set on Revenue Service Integration Setup.

IF VAT Posting Type = "Standard", the VAT Product Posting Group is filled out from the "Inv. Posting Group 18%" field.

IF VAT Posting Type = "0-Based", the VAT Product Posting Group is filled out from the "Inv. Posting Group 0" field.

IF VAT Posting Type = "Non-Taxable", the VAT Product Posting Group is filled out from the "Inv. Posting Group Ex." field.

On Posting Purchase VAT Invoice, the system takes the 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 an assigned Purchase VAT Advance on Purchase VAT Invoice, the system makes additional entries on VAT Invoice and takes the assigned VAT Amount from "Assigned Advance VAT Ledger":

Debit account: Purchase VAT Unrealized Account

Credit account: VAT Settlement Account

Sales VAT Advance

Upon creating a Sales VAT Advance, the system checks the VAT Type in Invoice lines and fills out the VAT Product Posting Group according to the VAT Product Posting Group set on Revenue Service Integration Setup.

IF VAT Posting Type = "Standard", the VAT Product Posting Group is filled out from the "Sales Adv. Posting Group 18%" field.

IF VAT Posting Type = "0-Based", the VAT Product Posting Group is filled out from the "Sales Adv. Posting Group 0" field.

IF VAT Posting Type = "Non-Taxable", the VAT Product Posting Group is filled out from the "Sales Adv. Posting Group Exc." field.

On Posting Sales VAT Advance, the system takes the account from VAT Posting Setup:

Debit account: Sales VAT Unrealized Account

Credit account: VAT Settlement Account

Sales VAT Invoice

Upon creating a Sales VAT Invoice, the system fills out the lines of the VAT Business Posting Group from Customer and VAT Product Posting groups from Items (transferred from Sales Invoice).

On Posting Sales VAT Invoice, the system takes the 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 an assigned Sales VAT Advance on Sales VAT Invoice, the system makes additional entries on VAT Invoice and takes the 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 have the YES values in the “Settlement” field, otherwise NO.

Upon posting a correction invoice, if there is Primary invoice or any previous posted correction invoice related to it, the system asks: "Correction invoice has posted primary invoice or previous correction, do you want to cancel posting of previous and post correction?". Upon clicking "Ok", the system cancels the primary posting and posts the correction.

Also, the system restricts posting of those Primary Invoices that are related to at least 1 correction invoice posted, and the system returns an error message: "Primary invoice cannot be posted because it has a correction invoice posted", as well as restricts posting of correction if it has any next correction document posted.

There are some tools to control changes on posted VAT Invoices

• In a Purchase VAT Invoice/Purchase VAT Advance, upon Load Update, Load Invoice/Load Invoices, if External Status changes from "Approved" or "Approved Correction" to "Canceled", the system checks Posting Status, and if it is "Posted", restricts status update and makes a related record in the log.

• In Sales VAT Invoice/Sales VAT Advance, the system restricts Canceling when Posting Status is "Posted"; upon clicking "Cancel", the system shows the following message: "Invoice is posted, Cancel Posting first".

• Upon Load update, Load Invoice/Load Invoices, if External Status changes from "Approved" or "Approved Correction" to "Canceled", the system checks Posting Status: if it is "Posted", it restricts status update and makes a record in the log: "Invoice is posted, Cancel Posting first".

• In Sales VAT Invoice/Sales VAT Advance, the system restricts creating an adjustment. When the Posting Status is "Posted", upon clicking "Create Adjustment", the system shows the following message: "Invoice is posted, Cancel Posting first".

• Upon Load update, Load Invoice/Load Invoices, if External Status changes from "Approved" or "Approved Correction" to "Primary", the system checks the Posting Status: if it is "Posted", restricts status update and makes a record in the log: "Invoice is posted, Cancel Posting first".