Preparing for VAT reporting

Preparatory reports for the tax declaration are generated from the customer and vendor subledger accounts, so all postings subject to tax must be entered or generated from those subledger accounts

No tax postings should be entered directly through manual order entries in the general ledger; otherwise they will be excluded from the preparatory reports.

Transfer VAT postings are generated using the Bank Reconciliations form. Ensure that the transactions on the form are reconciled before period closing, in order to generate any VAT entries. If your company does not use the Bank Reconciliations form, the VAT postings on incoming payments must be entered manually in the general ledger before each closing.