Using Accounts for Unrealized VAT

You can choose to have VAT amounts calculated and posted to a temporary G/L account when an invoice is posted, and then posted to the correct G/L account and included in VAT statements when the actual payment of the invoice is posted. Before you can do this, you must complete the VAT posting setup.

To Use Accounts for Unrealized VAT:

  1. Open the General Ledger Setup window.

  2. On the Application tab, place a check mark in the Unrealized VAT field.

  3. Close the window.

  4. Open the VAT Posting Setup window.

  5. On the menu bar, click View, Show Column. Select the Unrealized VAT Type, Sales VAT Unreal. Account and Purch. VAT Unreal. Account fields. Click OK to have the fields displayed in the window.

  6. Click the AssistButton in the Unrealized VAT Type field and select an option that determines how unrealized VAT will be treated.

  7. Click the Sales VAT Unreal. Account field, and then enter the G/L account for unrealized sales VAT.

  8. Click the Purch. VAT Unreal. Account field, and then enter the G/L account for unrealized purchase VAT.

Attention

The first (blank) option is the default value of the field, meaning that unrealized VAT is not used. You can select one of the other options only if the Unrealized VAT field in the General Ledger Setup window contains a check mark.


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