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After running the 'VAT payments' functionality (and clicking 'Update'), we have successfully generated a VAT invoice against our VAT Supplier/Vendor (The Government).
After doing some checking of the data, we determined that the AX Generated amount is off by a small amount. So what we are actually going to pay doesn't match what AX generated.
How do you go about doing a VAT adjustment?
You are exactly right. I should have read that closer!
I found the solution here.
I needed to put the VAT account in the 'Account' portion and the non-vat account into the 'Offset account' and then do a debit. That fixed the numbers in both accounts.
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?
To adjust VAT amount (what country is that for? clearly not the USA) you need to impact the specific sales tax code(s) that are impacted by the original error.
I am assuming that you do not want or cannot reverse the original document (invoice) and re-enter it correctly.
To adjust the VAT sub ledger the simplest way is to post directly into the VAT Code.
You use the general journal form
Line 1: Ledger (account where VAT is posted), sales tax code = sales tax code you want to adjust, credit/debit amount per what you want to adjust.
Line 2: Ledger (offset account where the correction need to be impacting).
No, those all match. Basically my users are doing an 'Audit' and found that somebody did something incorrectly with a Customer which caused VAT to calculate incorrectly.
So our total amount, although correct based on the information that AX had at the time, is off a little due to user error.
We were just looking for a simple way to adjust the VAT. Do we need to instead look at fixing the issue at the Customer level?
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