Setting up for VAT cash basis

Use these steps to setup the VAT cash basis requirement.

  1. Configure VAT cash basis in entity tax code
    1. Sign in as Application Administrator and select Financials > Payables > Tax Setup > Entity Tax Code.
    2. Click Create.
    3. Specify this information:
      Tax Entity
      Select a tax entity.
      Tax Code
      Select a tax code.
      Accrued Or Invoiced
      Select whether the entity tax code type is accrued or invoiced.
      Tax Point
      Select Payment Date.
      Tax Terms
      Select Tax Before Terms.
      Tax Identification
      Specify a tax identification code.
    4. Specify the accounts in these fields to use for generating entries during invoice creation up to receipt of payment:
      • Tax Input Account: Used for Payables
      • Input Due
  2. Configure transaction codes in cash code.
    1. Sign in as Application Administrator and select Financials > Cash Management > Cash Setup > Cash Codes.
    2. Click Create.
    3. On the Transaction Codes tab, add the bank transaction codes that can be used for this cash code.
  3. Configure payment formats
    1. Select Financials > Cash Management > Cash Setup > Cash Payment Formats.
    2. Click Create.
    3. Complete and save.
    4. In the Remittance Options section, specify this information:
      Remittance Option
      Select Always Attached.
      Language Text Option
      Select English.
    5. In the Electronic Payment section, select a Rejection Bank Transaction Code. This field is required for bank transaction codes with Payment Output Option set to Electronic File.