Update General Ledger with Declared VAT

Outcome

VAT to pay or receive is declared. The General Ledger is updated. For details, see below.

You can use the VAT report number to identify all General Ledger transactions that were used as a basis for the declared VAT in 'General Ledger. Display Additional Information' (GLS250).

You can identify and review the vouchers created by selecting among the following alternatives for the VAT run in 'VAT Run. Open' (TXS100/B):

• To see the VAT declaration voucher number, select the Display option to display it together with the report number used for tagging the transactions on the E panel
• To review the voucher details, select option 11='Display VAT declaration voucher' or option 12='Display VAT payment' to display 'Voucher. Display' (GLS200).
• To reprint the voucher, select option 13='Print VAT declaration voucher' to display 'Journal. Print Copy' (GLS500/E), where you only need to press Enter.

All the included General Ledger transactions are tagged with the VAT report number in the General Ledger detail file (FGLEDX) as well as with additional information category 005 (number of VAT control report) or 020 (number of VAT template report).

Account Entries Created

A VAT declaration voucher is created by account and VAT code based on the original VAT posting from all transactions. The other side of the posting is TX01–119 (VAT to be paid) or TXS–219 (VAT to be received).

After the process is completed, a VAT payment voucher is created that has cleared the accounts used for the VAT declaration voucher. (The accounting string for the offsetting account entry is user-defined.)

Before you start

• The starting conditions listed in Reconciling and Declaring VAT must be met.
• A VAT run is initiated in 'VAT Run. Open' (TXS100) and the selected transactions are reviewed and correct, as described in Initiate VAT Run and Correct VAT Transactions Online and Print VAT Report.

Follow these steps

Create VAT Declaration Voucher

1. First, transfer the VAT to declare to separate accounts for VAT to be paid and VAT to be received by selecting option 8='Create VAT declaration voucher' for the VAT run in 'VAT Run. Open' (TXS100).

2. On the F panel, adjust the proposed accounting date, if needed, and enter the currency, exchange rate type and exchange rate.

3. Select a report template.

   Important: The template you entered when creating the VAT run in (TXS100/E) is proposed by default but can be changed. Note that it is the template you select now on the F panel that is used as the basis for posting the declared VAT and tagging the transactions with the VAT report number. If you do not enter a template here, you will not be able to identify the transactions used for the calculation afterwards.

4. Enter a report text and a voucher text. Press Enter.

   The transactions are transferred to the VAT to be paid and VAT to be received accounts. Also, each transaction is tagged with the number of the VAT template report, thereby enabling you or any auditors to identify the transactions used as the base for the declared VAT. A voucher is created by account and VAT code based on the original VAT posting from all transactions.

5. Fill in a VAT declaration form with the relevant values from the voucher and send it to the tax authorities.

6. After the tax authorities have confirmed the VAT declaration, select one or several of the following alternatives:

   • If everything is correct, adjust the proposed accounting date, if necessary, and enter the accounting string for the offsetting account entry (mandatory).
   • Recover incorrectly charged VAT.
   • Make the necessary adjustments by correcting transactions in 'General Ledger. Display Transaction' (GSL211/G).
   • Record refunded VAT in 'Journal Voucher. Open' (GLS100).

Update Ledgers with VAT Payment

1. Select option 9='Create VAT payment voucher' in (TXS100/B) to record the VAT payment and clear the VAT to be received and VAT to be paid accounts.

2. In (TXS100/F), adjust the proposed accounting date, if necessary, and enter the accounting string for the offsetting account entry (mandatory).

3. In (TXS100/F), adjust the proposed accounting date, if necessary, and enter the accounting string for the offsetting account entry (mandatory).