VAT on currency gains and losses

Requirement

In some countries, currency gains and losses are subject to VAT.

M3 solution

A currency gain or loss stemming from a payment transaction to a supplier or a customer can be split into a VAT amount and a base amount, pro rata to the VAT codes of the related invoice.

Configuration guidelines


Program ID	Program name	Description or comment
CRS405 CRS406	FAM Function. Open FAM Function. Open Details	Configure FAM functions AP20 and AP3`x`. In (CRS406), specify this information: VAT method - cash discount To recalculate the VAT share per VAT rate, specify 3. Split payment transactions We recommend that you specify 3. Split bank transaction For FAM functions AP3`x` only, we recommend that you specify 3. Currency rate variance Specify 2-VAT calculation.
CRS395	Accounting Rule. Set	Configure rules AP20 and AP3`x`. Define accounting rules for types 301 and 302 with accounts for which the VAT type is set from 4 to 9. For VAT receivable, define accounting rules for type 211-VAT receivable.
CRS750	Settings - General Ledger	Specify this information: VAT printout Specify 3-VAT on inv & in AP. Split currency variances Select this check box.