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. You can reclaim the VAT again when
the invoice is paid.
How Infor meets the requirement
This table shows a manual process using debit memos 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 the tax authority | Payables Invoice: Invoice Type = Debit Memo |
| When the invoice is paid and the VAT is reclaimed again from the tax authority, the reclaimable input VAT is credited | Select Manage Invoices > Paid tab. Aging Method = Age by Due Date or filtering
by Due Date Range Payables Invoice: Invoice Type = Invoice |