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1 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 DA1234 Settlement Discount by VAT Code.

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Presentation on theme: "1 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 DA1234 Settlement Discount by VAT Code."— Presentation transcript:

1 1 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 DA1234 Settlement Discount by VAT Code

2 2 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 Overview Overview of Settlement Discount by VAT Code With your system set up to use Settlement Discount by VAT Code functionality is provided that enables settlement discount in Accounts Receivable and Accounts Payable to be posted to specific posting codes defined against the VAT code, as opposed to the posting code defined on the relevant General Ledger control account record The mechanism for managing this functionality is clear and auditable Note that to use this functionality the system keys CESPLITSC, OPCLAWVAT and/or POCLAWVAT must be set to YES and your system must be set up to use European VAT (DA0370) Overview of Settlement Discount by VAT Code With your system set up to use Settlement Discount by VAT Code functionality is provided that enables settlement discount in Accounts Receivable and Accounts Payable to be posted to specific posting codes defined against the VAT code, as opposed to the posting code defined on the relevant General Ledger control account record The mechanism for managing this functionality is clear and auditable Note that to use this functionality the system keys CESPLITSC, OPCLAWVAT and/or POCLAWVAT must be set to YES and your system must be set up to use European VAT (DA0370)

3 3 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 General Supporting Files

4 4 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 VAT Codes This option has been modified to allow VAT claw back and settlement discount posting codes to be defined The VAT Claw back account for the current VAT code is defined in this field For Ledger R type VAT codes, the settlement discount account defined in this field must be flagged as a revenue account – the VAT code defined against the posting codes must also match the current VAT code Browse only displays posting codes that meet this criteria For Ledger R type VAT codes, the settlement discount account defined in this field must be flagged as a revenue account – the VAT code defined against the posting codes must also match the current VAT code Browse only displays posting codes that meet this criteria For Ledger type P VAT Codes, only non-revenue posting codes can be entered for the Settlement discount account Browse only displays non-revenue posting codes For Ledger type P VAT Codes, only non-revenue posting codes can be entered for the Settlement discount account Browse only displays non-revenue posting codes

5 5 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 Settlement Discount Processing

6 6 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 Cash – Accounts Receivable Settlement discount is posted to the sales settlement discount posting code defined against the appropriate VAT code when the batch is posted if the system key OPCLAWVAT is set to YES The functionality of this option has NOT been modified however settlement discount is now posted to the General Ledger posting code defined against the VAT code Note that this functionality is NOT available for Accounts Receivable Refunds

7 7 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 Direct Debit Generation Settlement discount is posted to the sales settlement discount posting code defined against the appropriate VAT code when the direct debits are generated if the system key OPCLAWVAT is set to YES The functionality of this option has NOT been modified either, however as for cash postings, settlement discount is now posted to the General Ledger posting code defined against the VAT code

8 8 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 Cash – Accounts Payable Settlement discount is posted to the purchase settlement discount posting code defined against the appropriate VAT code when the batch is posted if the system key POCLAWVAT is set to YES The functionality of this option has NOT been modified however settlement discount is now posted to the General Ledger posting code defined against the VAT code Note that this functionality also applies to processing payments via Payment Lists

9 9 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 Settlement Discount Processing – Example

10 10 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 Accounts Receivable Settlement Discount Processing VAT codes: V % L - 25% A foreign Customer has an exchange rate of divide (/) by 1.5 An invoice for has two lines of posting to each of the above VAT codes – is the calculated VAT amount A cash item for is posted against the invoice – 5% settlement discount was taken

11 11 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 The current postings, i.e. without CESPLITSC and OPCLAWVAT set, are as follows: AccountDR/CRBase Value Trans Value Control CR Bank Control DR Settlement Discount DR Claw back DR ROUNDING DR Accounts Receivable Settlement Discount Processing

12 12 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 The new postings, i.e. with CESPLITSC and OPCLAWVAT set, are as follows: AccountDR/CRBase Value Trans Value Control CR Bank Control DR Settlement Discount-V DR Settlement Discount-L DR Claw back DR ROUNDING DR Accounts Receivable Settlement Discount Processing

13 13 of 13 DA1234 Settlement Discount by VAT Code Last updated: March-2004 Accounts Receivable Settlement Discount Processing This example illustrates the rounding differences in the calculations If the amounts on an invoice are not identical the discount is distributed proportionately – also note that the settlement discount is evenly distributed nett of VAT Note: This example also applies to Accounts Payable cash postings, except that the debits and credits are reversed and the applicable system keys are CESPLITSC and POCLAWVAT


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