Transfer VAT

Select the Transfer VAT check box on the Tax Codes form to enable VAT recognition upon bank reconciliation. When you select this check box, the VAT amount paid by the customer is placed into the appropriate A/P tax account or A/R tax account at the rate specified by the assigned tax code. Upon bank reconciliation of the customer payment or deposit, the system determines the VAT amount to transfer after bank reconciliation. The VAT amount is then transferred to either the VAT A/R Received Account or VAT A/P Paid Account. The VAT is then paid to the taxing authority from this account.

This check box is enabled when Tax Mode is Item based for Tax System 1.

Caution:

Before clearing the Transfer VAT check box, make sure you have reconciled and processed all payments and deposits so VAT taxes are paid correctly. You must also remove the value in the Transfer A/R VAT Tax Code and Transfer A/P VAT Tax Code before clearing the Transfer VAT check box or the system displays a warning message.

Note: VAT recognition upon bank reconciliation is not available in a multi-site environment. It is intended for a single-site environment.