You use this program to calculate and optionally transfer the Input tax on unpaid supplier invoices to a tax clearing account in the General Ledger.
This applies where tax authorities dictate that if you claimed Input tax on supplier invoices and you adjusted or failed to pay those invoices within a specified time, then you have to repay the Input tax you previously claimed back to the tax authority. This program determines the Input tax amount to be repaid.
| Field | Description |
|---|---|
| Generate | Select this to calculate the AP tax relief value
according to the AP Tax Relief Options
indicated. The results of the calculation are displayed in the
AP Tax Relief listview. Invoices against which tax relief has already been processed are excluded. These are invoices against which a transaction type of T exists in the APSPAY-COD file. |
| Select this to generate a report of the contents of the AP Tax Relief pane. | |
| Save Form Values | This option is only enabled in Design mode (see Automation Design). Your selections are saved and applied when the program is run in automated mode. |
| Change Period | Select this to use the Change Posting Period program to indicate the period for which you want to generate the report. |
| Post | Select this to post the result of the calculation to
the Tax relief/recovery account indicated
in the General Ledger Integration program. On due date, the Tax relief/recovery account is credited and the related individual invoices' tax GL codes are debited. The invoice tax GL account to be debited is retrieved from the tax code against the invoice. The tax portion is calculated as: Invoice Balance * Original Tax Amount / Original Invoice Amount An AP Invoice journal is created. The GL journal is created/posted according to the Integration method define for Accounts Payable (General Ledger Integration). Invoices cannot be deselected. All invoices that meet the criterion are processed. Tax relief can only be processed once during the life of an invoice, however the recovery process using the Execute AP Payment Run program can happen multiple times until the invoice balance is zero (see Payment Run Tax Relief Recovery). The invoice balance is not affected in any way. |
| Field | Description |
|---|---|
| Supplier selection | |
| Selection | Indicate the suppliers for which you want to calculate tax on outstanding invoices. |
| Currency | Indicate the currency for which you want to include suppliers. Only suppliers with this currency are included, irrespective of the range of suppliers selected. |
| Other input | |
| Run date |
Indicate the date for which to run the report. This is used as the start date from which the system will count back the number of days entered in the No of days overdue field to determine whether an invoice is overdue. This defaults to the system date, but can be changed. |
| No of days overdue |
Indicate the number of days specified by your tax authority after which you need to repay Input tax on unpaid supplier invoices. Any invoice with an invoice date older than this number of days before the Run date is considered overdue and is included for tax relief. |
| Notation |
Enter a notation for the journal created when you Post the Input VAT to the Tax relief/recovery account. |
| Posting information |
This displays the month, year and GL account to which the journal will be posted when you select the Post option. |
| After processing completed | These options are displayed within programs that can be automated. They enable you to indicate the action you want to perform once processing is complete (see Automation Design). |
| Field | Description |
|---|---|
| Supplier | This indicates the supplier code. |
| Name | This indicates the supplier name. |
| Invoice | This indicates the supplier invoice number. |
| Invoice date | This indicates the invoice date. |
| Invoice due | This indicates the date on which the invoice was due for payment. |
| Original amount | This indicates the original invoice amount. |
| Original discount | This indicates the original settlement discount amount on the invoice. |
| Original tax | This indicates the original tax amount on the invoice. |
| Current balance | This indicates the current outstanding balance on the invoice. |
| Relief amount | This indicates the Input VAT amount outstanding on the invoice. This is the amount which must be repaid to the tax authority. This amount is posted to the Tax relief/recovery account when you select the Post option. |
| Tax code | This indicates the tax code against the invoice. The GL account defined against the tax code to be debited is retrieved from the tax code against the invoice. |
| Days | This indicates the number of days that the invoice is overdue based on the Run date and the No of days overdue indicated. |
| Select |
This program can only be run when a valid GL code (with a valid Tax code) is indicated in the Tax relief/recovery field on the Payables tab of the General Ledger Integration program.
When you select the Post function, all invoices in the AP Tax Relief listview are posted. You cannot exclude any invoices from being posted.
Invoices for which tax relief was previously posted are not displayed in the AP Tax Relief listview.
An Adjustment, Credit note or Debit note processed against an invoice using the AP Invoice Posting program changes the invoice balance and can cause the Tax relief/recovery account to be out of balance.
The tax reliefe/recovery system does not automatically adjust the Tax relief/recovery account for Adjustments, Credit notes or Debit notes processed against invoices using the AP Invoice Posting program. As these transactions change the invoice balance, the Tax relief/recovery account can be out of balance if a manual journal was not processed against the Tax relief/recovery account.