Value added tax (VAT) postings

Periodical VAT declaration

If you use the standard procedure, when you submit the periodical VAT declaration LN creates the following postings:

AmountDebit/ CreditLedger accountDefined in session
VAT payableCreditSales Tax account of the VAT tax codePosting Data for Singular Tax Codes (tfgld0171s000) or Posting Data for Multiple Tax Codes (tfgld0170s000)
VAT receivableDebitPurchase Tax account of the VAT tax code
Net VAT amount of the declaration *CreditInterim Tax Payable Account or Interim Tax Recoverable Account of the tax declaration masterTax Declaration Master (tfgld1620m000)

 

* If the net VAT amount of the declaration is less than zero, LN uses the Interim Tax Payable Account, otherwise, LN uses the Interim Tax Recoverable Account.

Using a tax balancing account

If you use an additional tax balancing account, when you submit the periodical VAT declaration, LN creates the following postings:

AmountDebit/ CreditLedger accountDefined in session
VAT payableCreditSales Tax account of the VAT tax codePosting Data for Singular Tax Codes (tfgld0171s000) or Posting Data for Multiple Tax Codes (tfgld0170s000)
VAT receivableDebitPurchase Tax account of the VAT tax code
Net VAT amount of the declarationCreditTax Balancing Account of the tax declaration masterTax Declaration Master (tfgld1620m000)

 

To balance the tax accounts, LN creates the following postings:

AmountDebit/ CreditLedger accountDefined in session
Net VAT amount of the declarationDebitTax Balancing Account of the tax declaration masterTax Declaration Master (tfgld1620m000)
Net VAT amount of the declaration *CreditInterim Tax Payable Account or Interim Tax Recoverable Account of the tax declaration masterTax Declaration Master (tfgld1620m000)

 

* If the net VAT amount of the declaration is less than zero, LN uses the Interim Tax Payable Account, otherwise, LN uses the Interim Tax Recoverable Account.

Periodical VAT payment

If you process the payment of the VAT declaration, LN creates the following postings:

AmountDebit/ CreditLedger accountDefined in session
Net VAT amount of the declarationDebitInterim Tax Payable Account or Interim Tax Recoverable Account of the tax declaration master.Tax Declaration Master (tfgld1620m000)
BankCreditAccount selected for the transaction type used for the bank in Cash Management.