Unrealized VAT Type Field, VAT Posting Setup Table
Specifies how to handle unrealized VAT, which is VAT that is calculated but not due until the invoice is paid. The unrealized VAT type determines how a payment is allocated to the invoice amount (excluding VAT) and the VAT amount itself, and how VAT amounts are transferred from the unrealized VAT account to the (realized) VAT account.
Note that the field is automatically set to Blank. The option can only be changed if there is a check mark in the Unrealized VAT field in the General Ledger Setup window.
The available options for handling tax when posting payments are the following:
| Option | Description |
|---|---|
Blank |
Select this option if you do not want the program to use the unrealized VAT feature for the current combination. |
Percentage |
When you select this option, each payments cover both VAT and invoice amount in proportion to the payment's percentage of the remaining invoice amount. The paid VAT amount is transferred from the unrealized VAT account to the VAT account. |
First |
When you select this option, payments cover VAT first and then invoice amounts. In this case, the amount transferred from the unrealized VAT account to the VAT account will equal the amount of the payment until the total VAT has been paid. |
Last |
When you select this option, payments cover the invoice amount first and then VAT. In this case, no amount will be transferred from the unrealized VAT account to the VAT account until the total amount of the invoice, exclusive VAT, has been paid. |
First (Fully Paid) |
When you select this option, payments will cover VAT first (as in the First option), but no amount will be transferred to the VAT account until the full amount of VAT has been paid. |
Last (Fully Paid) |
When you select this option, payments will cover the invoice amount first (as in the Last option), but no amount will be transferred to the VAT account until the full amount of VAT has been paid. |
Tip
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Parent Tables
| Table | Location |
|---|---|
| VAT Posting Setup Table | General Ledger |
| VAT Posting Setup Table | General Ledger |