RE: How to do VAT Adjustment?
Zvika,
Thank you for the response.
I finally have gotten more details from my accounting team.
1. Customer was invoiced and charged VAT on the invoice.
2. Customer should not have been charged VAT and therefore needed a credit of the VAT amount.
3. Due to the situation they were in at the time (Long store... ...), they created a Journal to get that credit to the customer.
4. The journal went from the 'Customer' to an offset account. This is some sort of holding account. (NON VAT account).
5. Now, we are trying to create a journal that will move the refund from that holding account into the proper VAT account.
6. When adding in the 'VAT COde' on the 'General' tab, we get the following error:
Ledger account [holding account] is not among the accounts in account group [Ledger Posting Group] that are used for VAT code [VAT Code]
This does make sense as the holding account they are trying to use is not a VAT account specified in the 'Ledger Posting Group' we use.
The question now is, how do I get the amount from the 'holding account' into the correct VAT account?