About VAT entries from the general ledger

In Visma Net, you can configure automatic VAT calculation in documents that you create in the system.
With automatic VAT calculation, tax and taxable amounts are computed automatically on each invoice or invoice created in the system workspaces (such as Customer ledger or Supplier ledger).
Once a document is created and released, the system automatically creates the appropriate general ledger transactions containing VAT-related journal entries.

In Visma Net, you can also create tax-related transactions manually in the General ledger workspace.
These transactions update the balances of the general ledger accounts specified for each journal entry of the transaction.

Manual creating of VAT-related transactions is available only if the VAT entry from general ledger module functionality is enabled in the Enable/disable functionalities (CS100000) window.

You should use the Journal transactions (GL301000)window to create a VAT-related journal transaction in the General ledger workspace.
In this window, you need to select the Create VAT transactions check box so that the additional VAT ID and VAT category columns appear in the table.

Each VAT-related transaction should contain at least three journal entries:

  • A journal entry that represents the document amount. (This amount can be recorded, for example, to the supplier ledger account.)
  • A journal entry that represents the VAT amount. (This amount can be recorded, for example, to the VAT payable account defined for a VAT.)
  • A journal entry that represents the taxable amount. (This amount can be recorded, for example, to any expense or income account, depending on the VAT type.)

While creating a journal transaction, you need to specify the following information for each journal entry you add:

  • Account:
    The general ledger account that should be updated with the amount you enter in this line.
  • Subaccount:
    The appropriate subaccount (if any).
  • Ref. number:
    The number of the internal or external document to which the transaction is related. VAT-related information will be posted to the appropriate VAT report only if you specify this reference number. Otherwise (if the Ref. number column is empty), VAT and taxable amounts will not be reflected in the VAT report.
    All journal entries of the journal transaction that relate to the same document should have the same document number in the Ref. number column.
  • Debit amount or Credit amount:
    The amount that should debit or credit the specified general ledger account (and subaccount, if applicable).
    A single journal entry should contain only a debit amount or credit amount.
  • VAT ID:
    The VAT to be used to calculate VAT amount. The system enters the tax automatically if you have specified an account assigned to a particular VAT on the General ledger accounts tab in the VAT (TX205000) window.
  • VAT category:
    The VAT category based on which the taxable amount is calculated. The system enters the tax category automatically if you have selected an account (expense, income, or inventory) that is associated with a particular VAT category in the Chart of accounts (GL202500) window.

In a transaction, the total credit amount (Credit total in the top part) of all journal entries must be equal to total debit amount (Debit total) of all journal entries.

When you create a journal entry in the Journal transactions (GL301000)windoww, the system calculates the tax amount according to the VAT associated with the general ledger account (and subaccount, if applicable) that you specify in the Account (and Subaccount, if any) column. When you specify the account (subaccount), the system automatically enters the tax associated with this account (subaccount) in the VAT ID column and uses it for calculating the VAT amount for the entry.

The account (and subaccount. if any) associated with the tax has been specified in the VAT payable account (and Subaccount) or VAT claimable account (and Subaccount) field (depending on the VAT type) on the General ledger accounts tab in the VAT (TX205000) window during configuration of a tax in the system.

While you are adding a journal entry, you can overwrite the default VAT ID value.

The system calculates the taxable amount according to the VAT category specified for the journal entry in the VAT category column in the Journal transactions (GL301000)window.
Once you have selected an account in the Account column, the system automatically enters the VAT category associated with the general ledger account.
The associated VAT category is the one that is assigned to the selected general ledger account in the VAT category column in the Chart of accounts (GL202500) window.

If no VAT category is specified for the general ledger account you select in the Account column, no VAT-related transaction can be created.

On release of the journal transaction (a batch) that you have created, the general ledger accounts specified in each journal entry will be updated with the appropriate amounts.
The tax-related amounts will be reflected in the appropriate tax report only if the number of the document related to the journal transaction is specified for each journal entry in the Ref. number column.