Problem: How Can I enter VAT Payment performed by Third Party?
Solution:
For Example, you have 3048.83 AED Payable VAT + 30 AED Fee from Al Ansari Exchange, in order to correctly reflect the operation, following entries should be done in the system:
1) Create VAT Return and Calculation of VAT Liability Documents according to the standard procedure.
2) Create a new Bank Account for Al Ansari Exchange as Transit Account.
1.1) This Transit Bank Account should be linked to new GL Account (Please refer to the manual on how to add new GL account to the Chart of Accounts.
3) Create Money Transfer Document from your current Bank Account to newly created Transit Bank Account:
Once the Money Transfer is posted, the following transactions will be created:
4) Once the payment is received, create Tax Payment document from newly created Transit Bank Account:
Tax Payment will create the following transactions :
5) Create Invoice Received from Third Party Company for Processing Fee:
Once the Invoice Received is posted, the following transactions will be created:
6) Create Payment Document based on the invoice received from Transit Bank Account:
Bank Payment will create the following transactions:
7) The entries described above will have the following reflection in Cash Assets Statement (Money Transfer will appear both in Bank Account (as outflow) and in Al Ansari Exchange account (as inflow)):
Thank you for a being a FirstBIT customer! #VAT payment #Ansari exchange #exchange company charges