The required fields are: Company, Contract, Entity, and Basis.
The "Input VAT Transaction (create)" form. The Main tab
In the Company field, select the supplier, a company or an individual, who is related to this transaction.
The Contract field is populated automatically with the default contract of the entity selected in the Company field. If necessary, you can select another contract of this company (to open the list of contracts, click in the Contract field, then select Show all).
<Auto> in the Number field indicates that a number to this document is assigned automatically when you save the document. The From field is populated automatically with the current business date. You can select another date if necessary.
Optionally, in the Order field (if available), specify the order which is related to the current transaction.
If you need to generate the General Ledger transactions (journal entries) for this input VAT transaction, select the Generate GL Transactions check box. This enables the Income / Expense Account column on the Inventory and Services tab, so that you can select the appropriate GL accounts for such GL transactions. If you only need to adjust the VAT amount and corresponding taxable amount, clear the Generate GL Transactions check box.
Select the Decrease Recoverable VAT check box to indicate to the system that the recoverable VAT amount must be decreased with decrease of the input VAT amount. If the check box is not selected, only input VAT will be decreased. This check box is available for specific transaction types if Decrease is selected as the adjustment type.
In the Transaction Type field, select the type of this input VAT transaction. As transaction types, the following options are available:
- Advance Payment: To adjust any input (recoverable) VAT amounts in accordance with the advance payments made to suppliers.
- Advance Payment (Reverse Charge): To adjust any input (recoverable) VAT amounts that incurred on prepayments to foreign-country businesses when the reverse charge mechanism is applicable.
- Bad Debt: To adjust any input (recoverable) VAT amounts resulted from your company's bad debts written off by suppliers. The resulting amounts are included in the Adjustment column on VAT returns.
- Invoice Received: To record any increase or decrease in input (recoverable) VAT amounts resulted from invoice corrections.
- Reverse Charge (Inventory): To adjust any input VAT amounts that incurred on imported goods for the reverse charge mechanism.
- Reverse Charge (Services): To adjust any input VAT amounts that incurred on services purchased under the reverse charge mechanism.
- Apportionment Annual Adjustment: To finally adjust the recoverable VAT amount for an Invoice Received (which goods were used for mixed supplies) in accordance with the percentage of taxable sales with respect to VAT-exempt sales calculated based on the accounting data of the ended year. For more information, refer to Annual Adjustment for VAT Apportionment.
- Capital Assets Scheme: To adjust the input VAT initially recovered on purchase of a fixed asset that was later related to mixed sales. Applicable for fixed assets whose cost is equal or exceeds 5 million Dirhams and supposed to be used more than 5 years (10 years for buildings). For more information, refer to The Capital Assets Scheme.
In the Adjustment Type field, select how this input VAT transaction adjusts the input (recoverable) VAT amount and the corresponding taxable input amount. The following options are available:
- Increase: To be selected if this input VAT transaction increases the input VAT amount.
- Decrease: To be selected if this input VAT transaction decreases the input (recoverable) VAT amount.
In the Entity field, select your company's entity for which this document is being prepared. The Entity field is available if the Multi-Company Accounting option is selected on: Administration > Settings > General Settings. You can select your personal default entity to appear in documents; for this, refer to Personal Settings. If you have not selected your default entity, the entity defined first will be used as the system default value.
In the Department field, specify the department to associate it with this transaction's financial results.
Optionally, in the Basis field, select the document type and particular document of this type to facilitate tracking of the related documents.
In the Comment field, you can specify some additional information related to the transaction.
The hyperlink above the Comment text box, shows information about the document currency, its exchange rate with respect to the national currency, and price option applied to this transaction—for instance, on the above screenshot: EUR=4.52*AED * Prices Include VAT. To select another price option, click the hyperlink—this opens the Prices and Currency dialog box.
The Generate Tax Invoice button
If this input VAT transaction has Increase as the adjustment type and its transaction type is not Reverse charge, you can enter/generate a Tax Invoice Received. For example, a tax invoice received can be generated if Transaction Type is Invoice Received and Adjustment Type is Increase.
The Generate Tax Invoice button is located at the bottom of the form with the Tax Invoice # and From input fields using which you can enter the date and the number of the original tax invoice received from the supplier. Alternatively, you can click on the toolbar: Generate > Tax Invoice Received and, in a new document, enter the date and the document number.
Note. Without tax invoices received, the appropriate input VAT amounts cannot be recovered.
The document totals and other information
At the bottom of the form, the VAT field shows the total VAT amount calculated for the document, and the Total field shows the document total amount.
Also, at the bottom of the form, you can view who created the document and the document current status; it can be one of the following:
- New (document was created, but not registered)
- Not Posted (document was recorded, but not posted)
- Posted (document was posted)
- Marked for Deletion (document was marked to be deleted)
The toolbar buttons
After filling out the tab, click the Save button to save your work. After filling out all the tabs, click Post to post the document without closing it or Post and close to post and close the document. For descriptions of other buttons, see Document Toolbar.