Visma.net ERP

About recognising the pending VAT on documents

By using the On documents VAT recognition method, you recognise VAT amounts calculated in the unpaid documents that are subject to pending VAT.
You can initiate the recognition process by using any needed date.

Example of general ledger transactions generated when pending VAT is processed

This section provides an example of the general ledger transactions that the system generates when it processes a customer invoice that is subject to pending VAT.

Suppose your company issues a €1000 invoice dated 01.01.2020 for services.
The services are subject to a 7% VAT. When this invoice is released in the system, the system creates the following entries in the General ledger.

Account	Date	Debit	Credit
Customer ledger	01.01.2020	1070	-
Sales (as an example)	01.01.2020	-	1000
Pending VAT payable	01.01.2020	-	70

On 01.31.2020, you run the VAT recognition process.
The system generates the following general ledger transactions once the VAT recognition is completed.

Account	Date	Debit	Credit
Pending VAT payable	01/31/2020	70	-
VAT payable	01/31/2020	-	70

You can view the generated general ledger transactions in the Journal transactions (GL301000) window by using the Batch number link available in the table.

You specify the Pending VAT payable account and the VAT payable account (as well as the Pending VAT claimable account and the VAT claimable account) for each particular VAT code on the General ledger accounts tab of the VAT (TX205000) window.

The amounts posted to the VAT payable or VAT claimable account will be included in the VAT report, which you create in the Prepare VAT report (TX501000) window.

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