A/P Payment Update - VAT Processing Information

If VAT processing is enabled in the General Ledger Installation screen, the update will reclassify VAT tax when the retention portion of an invoice with a VAT code is paid. More specifically, the update will

  • Calculate the portion of Retention VAT tax to be reclassified as follows:

  • Apply the same percentage as the ratio of ‘Retention paid’ to ‘Total retention’

  • Credit Vendor Retention VAT Tax Payable (G/L code from new VAT Tax Code Table)

  • Debit Vendor Current VAT Tax Payable in the amount of the reclassified ‘Retention VAT Tax’ (G/L code from VAT Tax Code Table)

  • Round to the nearest penny

  • If cost centers are set to Yes in the current company, assign the Cost Center stored in VN_GL_DISTRIBUTON_HEADER_MC Table to both sides of this transaction