The required fields are: Entity, Company, Contract, and Basis.
The "Output VAT Transaction (Create)" form. The Main tab
In the Company field, specify a customer, company or an individual, who is a party to this transaction. Select it from the Companies catalog or create a new record.
The Contract field is populated automatically with the default contract of the company 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 by the current business date. You can select another date if necessary.
Select the Intra-GCC check box to indicate that this transaction is related to sales within GCC. This check box is available only for the following transaction types: Invoice and Advance Payment.
The Emirate field is automatically populated to show the emirate of the customer selected in the Company field.
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 (the GL journal entries) for this output 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 income accounts for such GL transactions. If you need only to register the changes in output VAT amount and corresponding taxable amount, clear the Generate GL Transactions check box.
In the Transaction Type field, select the type of this output VAT transaction. As transaction types, the following options are available:
- Advance Payment: To adjust any output VAT amounts that incurred on customer advance payments.
- Advance Payment (Reverse Charge): To adjust any output VAT amounts that incurred on prepayments to foreign-country businesses on the imported supplies under the reverse charge mechanism.
- Zero-Rate Cancellation: To adjust the output VAT amounts resulted from sales initially considered as exempt or zero-rated sales.
- Bad Debt: To record any changes in output VAT amounts resulted from written off customer bad debts. The resulting amounts are included in the Adjustment column on VAT returns.
- Invoice: To record any increase or decrease in the output VAT amounts resulted from invoice corrections.
- Intra-GCC Transfer: To register any increase or decrease in the output VAT amounts related to transfer of goods within GCC.
- Reverse Charge (Inventory): To adjust any output VAT amounts that incurred on imported goods under the reverse charge mechanism.
- Reverse Charge (Services): To adjust any output VAT amounts that incurred on services purchased under the reverse charge mechanism.
- Increase: select this adjustment type if the output VAT transaction increases the output VAT amount.
- Decrease: select this type if the output VAT transaction decreases the output 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.
The Reason text box appears if the transaction type is Advance Payment or Invoice and the adjustment type is Decrease. By using this text box, you can explain why this transaction is needed. This comment will appear in a tax credit note generated for this transaction in the Explanation of Circumstances field.
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 the particular document of this type to facilitate tracking of the related documents. The Basis Number and From fields show the number and date of the basis document, respectively.
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: USD=3.67*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
The Generate Tax Invoice/Generate Tax Credit Note button is located at the bottom of the form. The button name changes depending on which type of tax document can be generated for the options selected in the Transaction Type and Adjustment Type fields. For example, a tax credit note can be generated if Transaction Type is Invoice and Adjustment Type is Decrease, while a tax invoice can be generated if Transaction Type is Invoice and Adjustment Type is Increase. No tax invoice or tax credit note can be generated if the transaction type for this output VAT transaction is any of Reverse Charge options.
Alternatively, you can use the Generate button on the toolbar in the upper area of the form. Clicking the Generate button opens a drop-down list with the following options:
- Tax Invoice
- Tax Credit Note
Depending on the transaction type, only one of the options is available for the particular transaction.
The document totals and other information
At the bottom of the form, the VAT Amount field shows the total VAT amount calculated for the document, and the Total Due field shows the document total.
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.