VAT credit
If an invoice remains outstanding for more than 6 months, the VAT credit
that was reclaimed on the purchase invoice must be repaid. The VAT can be reclaimed again when
the invoice is paid.
How Infor meets the requirement
This table shows how a manual process using debit memo can be used for this requirement:
| Requirement | FSM details |
|---|---|
| Invoice creation recognizing Input VAT: Payable to Vendor | Payables Invoice: Invoice Type = Invoice |
| Invoice creation claiming Input VAT against Output VAT: Payable to Tax Authority | Payables Invoice: Invoice Type = Invoice |
| Invoice remains outstanding for more than 6 months from Invoice Date | Select Manage Invoices > Open Invoices tab. Aging Method = Age by Invoice Date or filter by Invoice Date range |
| Invoice remains outstanding for more than 6 months from Due Date | Select Manage Invoices > Open Invoices tab. Aging Method = Age by Due Date or filter by Due Date range |
| Input VAT claimed for the outstanding invoice must be paid to Tax Authority | Payables Invoice: Invoice Type = Debit Memo |
| When Invoice is paid, the VAT can be reclaimed again from tax authority, crediting the (reclaimable) input VAT |
Select Manage Invoices > Paid tab. Aging Method = Age by Due Date or filtering
by Due Date Range Payables Invoice: Invoice Type = Invoice |