πŸ“ How to write tax types against NON-VAT codes?

Ellie
Ellie
  • Updated

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 β€˜Validate tax types for journals’

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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 β€˜Home’

Select the period you wish to post to e.g. 3/2020

Click Next

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Enter a code to post from

Select Tax type unless already auto filled to β€˜Standard’

Input the credit/debit amount and narrative if applicable

Click ADD

Enter a NON tax code

Select tax type β€˜Exempt’

Enter the required value to credit/debit and add a narrative

Click ADD

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Click Complete > Will display a warning. Users can choose to ignore this and continue or return to the journal to make corrections

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Clicking YES will allow the journal to process and take you back to Nominal Journal screen