Tax Agency: To Set Up a Tax Agency for VAT

The following activity will walk you through the process of configuring a tax agency to which VATs will be reported.

Attention: This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that you, as an implementation manager, are configuring the tax management functionality for the SweetLife Fruits & Jams company. The company's managers have decided that they want to automatically generate tax bills to report VAT to the tax agency.

You need to create a new vendor and define it as a tax agency in the system.

Configuration Overview

In the U100 dataset, for the purposes of this activity, on the Vendor Classes (AP201000) form, the TAXAGENCY vendor class has been configured.

Process Overview

In this activity, on the Enable/Disable Features (CS100000) form, you will enable the needed feature. To create a tax agency, you will create a new vendor on the Vendors (AP303000) form. On the tabs of this form, you will specify the vendor's details, select the Vendor is Tax Agency check box, and specify the needed settings on the Tax Agency tab.

System Preparation

To prepare the system, do the following:

  1. Launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded. You should sign in as an implementation consultant by using the gibbs username and the 123 password.
  2. On the Company and Branch Selection menu, on the top pane of the MYOB Acumatica screen, select the SweetLife Head Office and Wholesale Center branch.

Step 1: Enabling the Needed Feature

To enable the VAT Reporting feature, do the following:

  1. Open the Enable/Disable Features (CS100000) form.
  2. On the form toolbar, click Modify.
  3. Select the VAT Reporting check box under the Standard Financials group of features.
  4. On the form toolbar, click Enable.

Step 2: Creating a Vendor Account

To create a vendor account to be used as a tax agency, proceed as follows:

  1. Open the Vendors (AP303000) form.
    Tip: To open the form for creating a new record, type the form ID in the Search box, and on the Search form, point at the form title and click New right of the title.
  2. On the form toolbar, click Add New Record.
  3. In the Summary area, specify the following settings:
    • Vendor ID: VATTAX
    • Status: Active
    • Vendor Class: TAXAGENCY
  4. On the General tab, in the Account Name box, specify VAT Revenue Agency.
  5. In the Vendor Properties section, select the Vendor Is Tax Agency check box.
  6. On the form toolbar, click Save.

Step 3: Configuring the Vendor as a Tax Agency

To configure the newly created vendor account to act as a tax agency, proceed as follows:

  1. While you are still on the Vendors (AP303000) form, go to the Tax Agency tab.
  2. In the Default Tax Accounts section, specify the following settings:
    • Tax Payable Account: 24100 (Tax Payable)
    • Tax Claimable Account: 17000 (Tax Claimable)
    • Tax Expense Account: 65100 (Other Tax Expenses)
  3. In the Tax Report Settings section, specify the following settings:
    • Default Tax Period Type: Month
    • Automatically Generate Tax Bill: Selected
    • Use Currency Precision: Selected
  4. On the form toolbar, click Save.