How do we account only the VAT amount on a purchase invoice without an expense nor item code The supplier has paid the VAT on our behalf and when he invoices us, we want to enter the vat expense on the purchase line. i.e Cr Creditor ABC by e.g 1000 Dr VAT by 1000 using the VAT posting group only.
Hi In the VAT posting set-up you need to have defined a FULL VAT set-up. This is assigned to a GL Account and you can post the transaction on this account for FULL VAT.
Hi Steven, Thanks for the reply. I tried it but the system wants a gl account to be on the Purchase line. It prevents me from posting if there are no Gl account on the Purhase line even with the vat posting group as full VAT. I appreciate the help. Thanks again
Hi steven I manage to do it. It works. I had to enter the Gl account however the system does not make any entry to the account and only post the the account on the VAT posting group. Thanks a lot. Best regards
Hi Gary If it is 100% VAT I suppose the only place you can really push it to is direct to a GL account. It is a pure tax charge, not item related. If the charge is 100% VAT and you asssign a different account to the one in the VAT Posting set-up this would not make sense - it is PURE VAT, so the only entry it needs is to teh FULL VAT account. If you have a sales account and sell an item for 100.00 this has 17.5% VAT, so 100.00 hits sales and 17.50 into VAT. IF you enter a FULL VAT transaction for 117.50 then 0 will hit the sles GL account and the whole 117.50 will hit FULL VAT, because it is all VAT. The balance of the vendor will be correct, as will the VAT accounts as every aspect of the entry is VAT. This is common where haulage firms send the VAT element of the invoice on, and this is how we account for it. I think I have confused myself now - I hope this helps!