Creating a Payables invoice record for VAT reverse

When creating a basic invoice record, you must use the tax code record that has VAT Reverse enabled.

For information about how to enable VAT reverse charges, see the Financials Setup and Administration Guide.

  1. Sign in as Payables Manager and select Manage Invoices.
  2. Click Create Invoice.
  3. In the Invoice Entry Template field, select Basic.
  4. Complete the form.
  5. Click Save.
  6. Click Add Tax.

    The Change Tax Code page is displayed.

  7. Select the New Tax Code field. Verify that you selected a VAT enabled tax code and complete the parameters including Taxable Amount.
  8. Click Submit.
  9. On the Distributions tab, click Create.
  10. Specify the distribution amount and provide the distributions.
  11. Click Save.
  12. On the Distributions tab, click View to see the linked tax distribution.
  13. Release the invoice.
  14. Select Run Processes > Journalize Distributions.
  15. On the Journalize Preview page, select the specific invoice and click Search.
  16. When the process is complete, sign in as Payables Administrator and select Tax Setup > VAT Setup > VAT Return Report. The report shows the vendee’s input tax and the vendor’s output tax.