VAT for Early Payments: To Prepare a New Revision of VAT Tax Report

The following activity will walk you through the process of preparing a new revision of a VAT tax report.

Story

Suppose that the SweetLife company has already prepared a VAT tax report for the 01-2024 period. After a company accountant has processed a payment of a taxable invoice with a cash discount, a VAT credit memo was generated, and the amount of the output VAT has changed. Acting as the SweetLife accountant, you need to prepare a new revision of the tax report for the 01-2024 period, which will include the amounts of the documents related to the payment of the invoice.

Configuration Overview

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

Process Overview

In this activity, you will prepare a new revision of the VAT tax report on the Prepare Tax Report (TX501000) form. On the Release Tax Report (TX502000) form, you will review the new revision of the tax report and make sure that the amount of output tax was adjusted on the Tax Report Details (TX502010) form.

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 accountant by using the johnson username and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, set the business date in your system to 1/31/2024.
  3. 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.
  4. As a prerequisite activity, be sure that you have created the CANADA tax zone on the Tax Zones (TX206000) form as described in Tax Zones and Categories: To Create a Tax Category and Tax Zone for VAT.
  5. As a prerequisite activity, in the company to which you are signed in, be sure you have configured the VATTAX tax agency as described in Tax Agency: To Set Up a Tax Agency for VAT.
  6. As a prerequisite activity, be sure you have configured VAT on the Taxes (TX205000) form as described in Value-Added Taxes: To Create a General VAT and Exempt VAT.
  7. As a prerequisite activity, in the company to which you are signed in, be sure that you have prepared and released a VAT tax report for the 01-2024 period as described in Tax Report for VAT: Process Activity. The Update Closed Tax Periods check box is selected for the tax agency on the Vendors form.
  8. As a prerequisite activity, in the company to which you are signed in, be sure that you have processed a payment of an AR invoice and generated a VAT credit memo as described in VAT for Early Payments: To Process a Payment with a Cash Discount.

Step 1: Preparing a VAT Tax Report

To prepare a VAT tax report for the 01-2024 period, do the following:

  1. Open the Prepare Tax Report (TX501000) form.
  2. In the Summary area, specify the following settings:
    • Company: SWEETLIFE
    • Tax Agency: VATTAX
    • Tax Period: 01-2024

    Notice that some of the report lines now display the amounts of the taxable sales and the tax applied to it.

  3. On the form toolbar, click Prepare Tax Report.

Step 2: Reviewing the New Revision of the Tax Report

To review the new revision of the tax report, do the following:

  1. On the Release Tax Report (TX502000) form, which opens, review the amounts in the tax report lines. Notice that 3 is inserted automatically in the Revision box in the Summary area.
  2. Select the Show Difference check box.

    The system displays the amounts of the documents included in the new revision of the tax report.

  3. Clear the Show Difference check box.
  4. Click the link in the Total Output Tax line and review the documents on the Tax Report Details (TX502010) form. Notice that the output tax and taxable amounts calculated for the invoice of the LAKECAFE customer were adjusted for the discount amount that was given to the customer for early payment.