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:
| Amount | Debit/ Credit | Ledger account | Defined in session |
|---|
| VAT payable | Credit | Sales Tax account of the VAT tax
code | Posting Data for Singular Tax Codes (tfgld0171s000) or Posting Data for Multiple Tax Codes (tfgld0170s000) |
| VAT
receivable | Debit | Purchase Tax account of the VAT tax
code |
| Net VAT amount of the declaration * | Credit | Interim Tax Payable Account or Interim Tax Recoverable Account of the tax
declaration master | Tax 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:
| Amount | Debit/ Credit | Ledger account | Defined in session |
|---|
| VAT payable | Credit | Sales Tax account of the VAT tax
code | Posting Data for Singular Tax Codes (tfgld0171s000) or Posting Data for Multiple Tax Codes (tfgld0170s000) |
| VAT
receivable | Debit | Purchase Tax account of the VAT tax
code |
| Net VAT amount of the declaration | Credit | Tax Balancing Account of the tax declaration master | Tax Declaration Master (tfgld1620m000) |
To balance the tax accounts, LN creates the
following postings:
| Amount | Debit/ Credit | Ledger account | Defined in session |
|---|
| Net VAT amount of
the declaration | Debit | Tax Balancing Account of the tax declaration master | Tax Declaration Master (tfgld1620m000) |
| Net VAT
amount of the declaration * | Credit | Interim Tax Payable Account or Interim Tax Recoverable Account of the tax
declaration master | Tax 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:
| Amount | Debit/ Credit | Ledger account | Defined in session |
|---|
| Net VAT amount of
the declaration | Debit | Interim Tax Payable Account or Interim Tax Recoverable Account of the tax
declaration master. | Tax Declaration Master (tfgld1620m000) |
| Bank | Credit | Account selected for the
transaction type used for the bank in Cash Management. | |