Reporting VAT Paid - An overview

Following is the summary of important points:

  • The system does not associate Payments and Charges directly. You must use Standard Tax Invoicing to associate Taxes and Payments through the Tax Invoice.
  • In cases where the tax invoice is generated, but the payment is scheduled to be received through the A/R invoice. A/R invoices can be paid or can remain unpaid, for a specific duration of time. The system reports the taxes as paid when the A/R Invoice is paid. If an A/R Invoice is unpaid, a tax Credit is reported.
  • If the Post Package Total check box is selected and for other charges posted in advance, tax is reported on the Posting Date rather than the Paid Date.

You must enable the following tax invoice related property parameters.

  • TAXINV: Select the Value check box to enable the tax invoicing functionality.
  • ARTAXINVUSAGE: If you select the property parameter ARTAXINVUSAGE check box, the system automatically creates an A/R invoice when a tax invoice is created for a folio that has a direct bill settlement. This parameter ensures that there is a one to one correspondence between the Tax Invoice and the A/R Invoice. The tax invoice is also linked to the related A/R charge. The linked tax invoice replaces the A/R Invoice throughout the system.
  • TAXINZEROBALANCEONLY: You must select this property parameter to require the tax invoice balance to be zero. This ensures that a final tax invoice represents taxes that are fully paid. If this parameter is not selected, invoiced charges are considered paid, even if the tax invoice balance is not zero.
    Note: Using TAXINZEROBALANCEONLY is recommended. If you do not use it, a final tax invoice with a balance is still considered paid.
  • PAIDTAXSTARTDATE: Date to start reporting paid taxes. The system sets this parameter to the Hotel Date of the property that enables this feature. This ensures that the dates prior to the property upgrade are not re-reported on a different date. All transaction posted before the upgrade date are reported on the posting date.
    Caution: 
    Setting the PAIDTAXSTARTDATE date incorrectly may cause taxes to be reported incorrectly. If a client wants to retroactively report paid taxes, they can set the PAIDTAXSTARTDATE in the past. Please consult with support or install services before setting the date in the past. If you do this without help, all final invoices, even A/R are considered paid. If a client wants to start reporting paid taxes on a clean future boundary, this date can be set in the future. Until then, all taxes posted prior to this date are reported as paid on the posting date.

For the desired user group, you must add the Tax Invoicing page under the Screen Permissions tab and select the following check boxes:

  • Query
  • Update
  • Tab Available
  • Tab Always Displayed

When you post a Direct Bill settlement to an A/R Folio, a charge record is created in the Property A/R Account > Charges tab. If you generate a Final Tax Invoice for the Direct Bill settlement record, an invoice record under the Property A/R Account > Invoice tab is created by the system. The tax invoice number is copied to the A/R Invoice number by the system.