Accounting Rules for VAT Account Entries

Account entries for VAT are created in a number of accounting events, see the tables for the respective module. Which account entries are created is based on the configuration of the VAT code used in 'VAT Code. Open' (CRS030).

Accounting rules for VAT account entries

In this table, XX represents the two-letter module prefix and 00 represents the number of the accounting event:


Rule	D/C	Name	Description
XX00-107	D	Payable VAT base - report	Used to record the net VAT liability when an invoice is paid and the 'VAT reported on payment day' check box is selected in 'VAT Code. Open'(CRS030).
XX00-108	D	Payable VAT base - reverse	Used to record an offsetting amount to the amount specified on accounting type 107.
XX00-111	C	VAT payable 1	Used to record VAT payable when the 'VAT reported on payment day' check box is left cleared for the VAT code in (CRS030).
XX00-112	C	VAT payable 2	Used to record VAT payable for VAT rate 2 when the 'VAT reported on payment day' check box is left cleared in combination with VAT method 2 or 3 in (CRS030).
XX00-113	C	Suspense account for VAT payable 1	Used to record VAT payable when the 'VAT reported on payment day' check box is selected in (CRS030).
XX00-114	C	Suspense account for VAT payable 2	Used to record VAT payable for VAT rate 2 when the 'VAT reported on payment day' check box is selected in combination with VAT method 2 or 3 in (CRS030).
XX00-203	D	VAT FA under construction 1	Used to record VAT payable when the 'VAT FA activate' check box is selected in (CRS030) and the VAT is connected to a fixed asset under construction account.
XX00-204	D	VAT FA under construction 2	Used to record VAT payable for VAT rate 2 when the 'VAT FA activate' check box is selected in (CRS030) in combination with VAT method 2 or 3 and the VAT is connected to a fixed asset under construction account.
XX00-207	D	Receivable VAT base - report	Used to record the net VAT debt in two scenarios. When an invoice is paid and the 'VAT reported on payment day' check box is selected in (CRS030), and when a fixed asset is activated in 'FA Under Construction. Open' (FAS660) and the 'VAT FA activate' check box is selected in (CRS030).
XX00-208	D	Receivable VAT base - reverse	Used to record an offsetting amount to the amount specified on accounting type 207.
XX00-211	D	VAT receivable 1	Used to record VAT receivable when the 'VAT reported on payment day' check box is left cleared in (CRS030). When used to record Canadian sales tax on purchases in 'Supplier Invoice. Record' (APS100) it represents the General Sales Tax (GST) or the Harmonized Sales Tax (HST). See Canadian Sales Tax in M3.
XX00-212	D	VAT receivable 2	Used to record VAT receivable for VAT rate 2 when the 'VAT reported on payment day' check box is selected in combination with VAT method 2 or 3 in (CRS030). When used to record Canadian sales tax on purchases in (APS100) it represents the Provincial Sales Tax (PST) or Quebec Sales Tax (QST). If the PST is self-assessed by the company, an offsetting PST credit transaction is created based on accounting rule AP10-217.
XX00-213	D	Suspense account for VAT receivable 1	Used to record VAT receivable when the 'VAT reported on payment day' check box is selected in (CRS030).
XX00-214	D	Suspense account for VAT receivable 2	Used to record VAT receivable for VAT rate 2 when the 'VAT reported on payment day' check box is selected in combination with VAT method 2 or 3 in (CRS030).