Transfer VAT

Select this check box to enable VAT recognition upon bank reconciliation. When you select this check box, the VAT amount paid by the customer is placed into the appropriate A/P Tax Account or A/R Tax Account at the rate specified by the assigned tax code. Upon bank reconciliation of the customer payment or deposit, the system determines the VAT amount to transfer after bank reconciliation. The VAT amount is then transferred to either VAT A/R Received Account or VAT A/P Paid Account. The VAT is then paid to the taxing authority from this account.

This check box is enabled when Tax Mode is Item based for Tax System 1.

See Using the Transfer VAT Field for more information.