Creating VAT cash basis

Use this procedure to set up the VAT cash basis requirement.

  1. Configure VAT cash basis in Payables:
    1. Sign in as Application Administrator and select Financials > Payables > Tax Setup > Entity Tax Code.
    2. Click Create.
    3. Complete the fields.
    4. In the Tax Point field, select Payment Date.
    5. In the Tax Terms field, select Tax Before Terms.
    6. To generate entries during invoice creation until receipt of payment, specify this information:
      • Tax Input Account: used for Payables
      • Input Due
  2. Configure transaction codes in Cash Management:
    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 the fields.
    4. Click Save.
    5. In the Remittance Options section, specify this information:
      Remittance Option
      Select Always Attached.
      Language Text Option
      Select English.
    6. In the Electronic Payment section, select a Rejection Bank Transaction Code. This field is required for bank transaction codes with Electronic File selected as the Payment Output Option.