Void Check Update - VAT Processing Information

If VAT processing is enabled in the General Ledger Installation screen, the update will reverse VAT tax reclassification when a check that included retention paid is voided. For invoices included on the check being voided that had an assigned VAT code, retention VAT will be returned to the ‘Retention A/P VAT Tax Payable’ G/L account. This update already creates unposted G/L transaction records in a temporary Payment Table for ‘Cash’, ‘Discount taken’, ‘Accounts Payable’ and ‘Retention Payable’. 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’

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

  • Credit 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