Question
How to write tax types against NON-VAT codes?
Answer
To make a journal posting against a NON-VAT code go to Accounts > Nominal Ledger > Ledger Parameters
Select Miscellaneous from the Global Accounts Table
Click Amend > Tick βValidate tax types for journalsβ
Once enabled, users will receive a warning if the journal being performed:
- Includes postings to Non VAT codes with tax types set but there are not corresponding postings to VAT codes in the journal.
- The taxable (goods/services) value for VAT postings does not match the sum of the non VAT posting with the same tax type.
Then go to Accounts > Nominal Ledger > Journal Entry > Journal
Under Posting Details:
Enter the posting date e.g. 16/03/2020
Enter relevant posting reference
Select Tax Category βHomeβ
Select the period you wish to post to e.g. 3/2020
Click Next
Enter a code to post from
Select Tax type unless already auto filled to βStandardβ
Input the credit/debit amount and narrative if applicable
Click ADD
Enter a NON tax code
Select tax type βExemptβ
Enter the required value to credit/debit and add a narrative
Click ADD
Click Complete > Will display a warning. Users can choose to ignore this and continue or return to the journal to make corrections
Clicking YES will allow the journal to process and take you back to Nominal Journal screen