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Administrator Guide
Last Updated: 2023-06-23
Steps: Set Up VAT on Supplier Payments

Steps: Set Up VAT on Supplier Payments

You can calculate and automatically post the accounting for Value Added Tax (VAT) and Goods and Services (GST) when you pay rather than invoice suppliers. You can record unrecognized VAT when you approve supplier invoices and book VAT receivables. When you apply payments to existing invoices before you set up VAT on supplier payments, those payments use the general accounting to process associated payments.
  2. Access the
    Edit Company Tax Details
     task from the related actions menu of your company.
    Select the
    VAT on Payment
     check box and select options from these prompts:
    • Default Tax Applicability
    • Default Tax Code
    Security:
    • Set Up: Company General
       domain in the Common Financial Management functional area.
    • Set Up: Payroll - Company Specific (Accounting)
       domain in the Core Payroll functional area.
    • Set Up: Tax
       domain in the Common Financial Management functional area.
  3. Access the
    View Account Posting Rule Set
     report.
    Select a
    Default Ledger Account
     for these account posting rules:
    • Transaction Tax
    • Transaction Tax on Payment
    Security:
    • Set Up: Account Rules
       domain in the Common Financial Management functional area.
    • Set Up: Payroll - Company Specific (Accounting)
       domain in the Core Payroll functional area.