How to: Use Accounts for Unrealized VAT

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You can choose to have VAT amounts calculated and posted to a temporary general ledger account when an invoice is posted, and then posted to the correct general ledger account and included in VAT statements when the actual payment of the invoice is posted. Before you can do this, you must complete the VAT posting setup.

To use accounts for unrealized VAT

  1. In the Search box, enter General Ledger Setup, and then choose the related link.

  2. In the General Ledger Setup window, on the General FastTab, select the Unrealized VAT check box.

  3. Close the window.

  4. In the Search box, enter VAT Posting Setup, and then choose the related link.

  5. In the VAT Posting Setup window, to view the options, choose the Unrealized VAT Type field, and then select an option that determines how unrealized VAT will be handled.

  6. In the Sales VAT Unreal. Account field, enter the general ledger account for unrealized sales VAT.

  7. In the Purch. VAT Unreal. Account field, enter the general ledger account for unrealized purchase VAT.

Important

The first <Blank> option is the default value of the field. This means that unrealized VAT is not used. You can select one of the other options only if the Unrealized VAT field in the General Ledger Setup window is selected.

See Also

Tasks

How to: Set Up Combinations of VAT Business Posting Groups and VAT Product Posting Groups