How do I Create a V.A.T. Only Transaction?

Summary

The following article outlines how to reverse the V.A.T. portion of an invoice.

More Information

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 " Systems\Accounts 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 <C+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 <C+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.

See also

• Creating a New Customer/Supplier
• How do I Account for Vat on Vehicle Deposits?
• How do I make a Customer Exempt of VAT?
• How do I Produce a Non-VAT Invoice for a Customer?
• How do I Run the VAT 100 Report?
• How do I Roll Back my VAT Period?

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Keywords AND Misspellings

vat, V.A.T. , only,reversal