How do I Create a V.A.T. Only Transaction?
The following article outlines how to reverse the V.A.T. portion of an invoice.
This is useful in cases where a account has been invoiced with V.A.T. by mistake.
|An item was exported but charged inclusive of V.A.T. or an internal account has been invoiced with V.A.T.|
This reversal is done through the Sales Ledger as follows: -
Go to " Sales Ledger Invoice/Credit Notes".
- Choose 'Credit Note' from the "Doc Type:" drop down menu.
- The "Date" will default to your System Date, change this if necessary.
- Enter the appropriate Customer Account or press <Ctrl+F1> to search for an account code.
|The [Document to Credit Selection] box will pop up if there are outstanding invoices on the Customer's Account. To link this credit to a specific invoice, click on that invoice in the list and click [Choose]. Alternatively choose 'Unallocated' to post an unallocated credit.|
- The "Doc No." will be filled in for you with either the number of the invoice you have selected or a new Credit Note number.
- Enter the sales centre of the original posting on the "Def. Centre" field. To search for a centre press <Ctrl+F1>.
- Enter a relevant comment e.g. 'V.A.T. Reversal'.
- Click [Next] to move onto the [Text] tab.
- In "Product Description:" enter a more detailed description that includes the original invoice number e.g. 'To reverse V.A.T. element of Invoice No. 12345.'
- Click [Next] to move onto the [Summary] tab.
- Click into the relevant V.A.T. Rate box e.g. into 'Std Rate' and enter the amount of V.A.T. you are crediting - this should be entered as a Positive amount.
- Click [Print] to print the credit.
- You will be warned the V.A.T. is outside the normal limits, click [Continue] to proceed.
- Click [Accept] to complete the posting.