Reverting VAT on Payment Discounts

If a payment discount has been calculated on the basis of an invoice amount including VAT, you have the possibility of having the payment discount part of the VAT amount reverted when the payment discount is granted.

To Revert VAT on Payment Discounts:

  1. Open the General Ledger Setup window.

  2. On the General tab, place a check mark in the Adjust for Payment Disc. field by clicking the field.

  3. Open the VAT Posting Setup window. and then place a check mark in the Adjust for Payment Discount field on the lines for which you want to use the feature.

    Note that you must activate the adjust for payments discount feature in both the general ledger setup (in general) and the VAT posting setup (for specific combinations of a VAT business posting group and a VAT product posting group).