To Recognize Pending Input VAT

You use the Recognize Input VAT (TX503500) form to initiate the process of recognizing input taxes.

To Recognize Pending Input VAT

1. Open the Recognize Input VAT (TX503500) form.
2. Optional: In the Date box in the Summary area, change the date to be used for loading the documents or applications to the table. If you leave the current business date (which is set by default), the documents or applications with a date earlier than or the same as the specified date are loaded.
   Note: To load the documents or applications with any date to the form, clear the Date box.
3. Optional: In the Company/Branch box, select the company or branch of the taxable documents for which the VAT amount has to be recognized.
4. In the Tax Agency box, select the tax agency that is associated with the pending VAT to be processed.
5. Optional: In the Tax ID box, select the tax to be recognized by the process.
6. In the VAT Recognition Method box, which the system filled automatically when you selected a tax agency, make sure that the needed option, which is one of the following, is specified:
   • On Payments: To load payment applications for the documents subject to pending VAT that are supposed to be recognized based on payments.
   • On Documents: To load the documents subject to pending VAT. Payments are not considered in this case.

   You can change this option, if needed, to recognize pending VAT for documents created with a recognition method different than the default one for the tax agency.

7. Do one of the following:
   • If you want to process only some of the listed documents or applications, select the unlabeled Included check boxes for the needed documents or applications, and then click Process.
   • If you want to process all listed documents or applications, click Process All.

When a debit adjustment is applied to an AP bill (and both of those documents are subject to pending VAT), you have to process two applications on the Recognize Input VAT (TX503500) form. One application should be processed for the AP bill, and the other one should be processed for the debit adjustment. The same practice should be applied to AR invoices and credit memos.