Purchase VAT Next Month

  • 11/10/2024
  • 5 minutes to read

This article describes the Purchase VAT Next Month feature, which automatically allocates the VAT of your purchase invoices and credit notes to the correct period – provided that the received date in these documents is later than the last day of the month of the related posting date.

When Enable VAT Correction is turned on, the system automatically populates the Document Received Date (or Document Receipt Date) field of your purchase invoices and credit notes with the value from the Posting Date field – or from another date field defined by you. Although you can change this value before posting a purchase document, you must have a value in the received date field while Enable VAT Correction is on. Otherwise, you can't post the document.

To enable VAT correction

To enable VAT correction in Continia Finance:

  1. Choose the Search icon, enter Extended Financial Reports Setup, and then choose the related link.
  2. On the Purch. VAT Next Month FastTab, turn on the Enable VAT correction setting.
  3. Select the desired values for the following options:
    • Bal. Account VAT Base - the default G/L account for the Correct VAT Entries report. A journal line is created based on the original posting date, and a balancing entry is created based on the document's received date.
    • Account VAT Base Next Month - the G/L account to which the net amount is posted on the original posting date.
    • Account VAT Amount Last Month - the G/L account to which the net amount is posted on the document's received date.
    • VAT Correction Jnl. Template Name - the default journal template name for the Correct VAT Entries report.
    • VAT Correction Jnl. Batch Name - the default journal batch name for the Correct VAT Entries report.
    • Source Code VAT Correction - the origin code for the Correct VAT Entries report. It's recommended to create a dedicated source code for this purpose.
    • Allow Doc. Receipt Date From - the earliest document received date on which posting to the company books is allowed, if you choose to run a plausibility check.
    • Allow Doc. Receipt Date To - the last document receipt date on which posting to the company books is allowed, if you choose to run a plausibility check.
    • Default Doc. Receipt Date - the default date of the document receipt date. If you select None, the field is left empty – and you must enter the date manually.

To correct VAT entries

To run the Correct VAT Entries task:

  1. Choose the Search icon, enter Correct VAT Entries, and then choose the related link.
  2. The Journal Template Name and Journal Batch Name should be pre-populated with the values defined on the Extended Financial Reports Setup page, but you can select different values if needed.
  3. On the Filter: G/L Entry FastTab, add a single date or a period to the Posting Date field.
  4. Select OK.

You're then presented with an overview of the invoices whose VATs are going to be transferred from one month to another. When you finish reviewing the corrections, select Post to process them.

Note

To accommodate these corrections, make sure to set up the appropriate VAT product posting group – and extend the related VAT product posting group to it under the Income Date VAT Posting Group column on the VAT Posting Setup page. For example, the VAT 21% posting group could be extended with the VAT 21% (following month) posting group.