Tax Report Configuration: To Create a Tax Report for VAT Variations

By performing this implementation activity, you will learn how to configure the content of a tax report for multiple variations of value-added tax, and to specify the rules of accumulating the data in the report lines.

Story

Suppose that SweetLife Fruits & Jams is going to report multiple types of VAT besides the general VAT and needs a separate tax agency and a tax report for this purpose. Acting as an implementation consultant, you need to create a tax agency and a tax report for VAT variations.

The tax report should include the following lines:

  • Net Tax to Pay or Reclaim: Accumulates the total tax amount to be paid to the tax agency or reclaimed from the tax agency in the tax period (that is, output tax minus input tax).
  • Reverse VAT: Accumulates the total tax amount of reverse VAT to be paid to the tax agency. This report line will be used for reporting a reverse VAT.
  • Standard-Rated Acquisitions: Accumulates the total tax amount to be paid to the tax agency or reclaimed from the tax agency in the tax period. This report line will be used for reporting a generate VAT that offsets the reverse VAT.
  • Deductible VAT: Accumulates the total tax amount of partially deductible VAT on the company's purchases. This report line will be used for reporting a partially deductible VAT.
  • Pending Output VAT: Accumulates the total tax amount of pending VAT to be paid to the tax agency.
  • Pending Input VAT: Accumulates the total tax amount of pending VAT to be claimed from the tax agency.

Configuration Overview

In the U100 dataset, the following configuration tasks have been performed to prepare the system for this activity to be performed:

  • On the Enable/Disable Features (CS100000) form, the VAT Reporting feature has been enabled.
  • On the Vendor Classes (AP201000) form, the TAXAGENCY vendor class has been configured.
  • On the Chart of Accounts (GL202500) form, the 24100 (Tax Payable), 17000 (Tax Claimable), and 65100 (Other Tax Expenses) accounts have been created.

Process Overview

In this activity, you will do the following:

  1. On the Vendors (AP303000) form, you will create a tax agency for VAT variations.
  2. You will create a tax report for the needed tax agency and add lines to it on the Reporting Settings (TX205100) form.
  3. You will add reporting groups on the Reporting Groups tab of the Reporting Settings form.
  4. On the Reporting Groups (TX205200) form, you will specify the report lines that should be updated by the taxes associated with each reporting group.

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.

Step 1: Creating a Tax Agency

To create a tax agency, do the following:

  1. On the Vendors (AP303000) form, create a new record.
  2. In the Summary area, specify the following settings:
    • Vendor ID: VATVAR
    • Status: Active
    • Vendor Class: TAXAGENCY
  3. On the General tab, in the Account Name box, specify Tax Agency for VAT Variations.
  4. In the Vendor Properties section, select the Vendor Is Tax Agency check box.
  5. On the form toolbar, click Save.
  6. Go to the Tax Agency tab.
  7. 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)
  8. In the Pending VAT Settings section, select On Payments in the VAT Recognition Method box.

    This setting in needed to recognize pending VAT on payments.

  9. In the Tax Report Settings section, specify the following settings:
    • Default Tax Period Type: Month
    • Update Closed Tax Periods: Selected
    • Automatically Generate Tax Bill: Selected
    • Use Currency Precision: Selected
  10. On the form toolbar, click Save.

Step 2: Creating a Tax Report, Adding Report Lines, and Creating Reporting Groups

To create a tax report for the new agency, add report lines, and create reporting groups, do the following:

  1. Open the Reporting Settings (TX205100) form.
  2. In the Tax Agency ID box, select VATVAR.
  3. In the Valid From box, select 1/1/2024.
  4. On the Report Lines tab, click Add Row on the table toolbar for each new line, and specify the following settings:
    Report Line Order Description Update With Update Rule Net Tax
    1 Net Tax to Pay or Reclaim Tax Amount +Output-Input Selected
    2 Reverse VAT Tax Amount +Output-Input Cleared
    3 VAT on Standard-Rated Acquisitions Tax Amount +Input-Output Cleared
    4 Deductible VAT Tax Amount +Input-Output Cleared
    5 Pending Output VAT Tax Amount +Output-Input Cleared
    6 Pending Input VAT Tax Amount +Input-Output Cleared
  5. On the form toolbar, click Save.
  6. On the Reporting Groups tab, click Add Row on the table toolbar for each new line, and specify the following settings:
    Name Group Type
    Reverse Output
    Standard-Rated Acquisitions Input
    Deductible Input
    Pending (Output) Output
    Pending (Input) Input
  7. On the form toolbar, click Save.

Step 3: Adding the Reporting Groups to the Report

To add the reporting groups to the report, do the following:

  1. Open the Reporting Groups (TX205200) form.
  2. In the Tax Agency box, select VATVAR.
  3. In the Reporting Group box, select 1 - Reverse.
  4. In the Report Version box, select 1.
  5. Click Add Row on the table toolbar, and add two rows, specifying the following settings (listed below) for each row:
    • Report Line: 1 - Net Tax to Pay or Reclaim
    • Report Line: 2 - Reverse VAT
  6. On the form toolbar, click Save.
  7. In the Reporting Group box, select 2 - Standard Rated Acquisitions.
  8. Click Add Row on the table toolbar, and add two rows, specifying the following settings (listed below) for each row:
    • Report Line: 1 - Net Tax to Pay or Reclaim
    • Report Line: 3 - VAT on Standard-Rated Acquisitions
  9. In the Reporting Group box, select 3 - Deductible.
  10. Click Add Row on the table toolbar, and add two rows, specifying the following settings (listed below) for each row:
    • Report Line: 1 - Net Tax to Pay or Reclaim
    • Report Line: 4 - Deductible VAT
  11. In the Reporting Group box, select 4 - Pending (Output).
  12. Click Add Row on the table toolbar, and add two rows, specifying the following settings (listed below) for each row:
    • Report Line: 1 - Net Tax to Pay or Reclaim
    • Report Line: 5 - Pending Output VAT
  13. In the Reporting Group box, select 5 - Pending (Input).
  14. Click Add Row on the table toolbar, and add two rows, specifying the following settings (listed below) for each row:
    • Report Line: 1 - Net Tax to Pay or Reclaim
    • Report Line: 6 - Pending Input VAT
  15. On the form toolbar, click Save.