Tax Report for VAT: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for preparing and releasing a tax report for VAT, and to understand (and change, if needed) the settings that affect the processing workflow.

Implementation Checklist

We recommend that before you initially prepare a tax report, you make sure the needed features have been enabled, settings have been specified, and entities have been created, as summarized in the following checklist.


Form	Criteria to Check
Enable/Disable Features (CS100000)	The VAT Reporting feature has been enabled.
Vendors (AP303000)	The tax agency has been configured, as described in Tax Agency: To Set Up a Tax Agency for VAT.
Reporting Settings (TX205100)	The tax report where the VAT should be recorded has been configured, as described in Tax Report Configuration: To Create a Tax Report for VAT.
Tax Categories(TX205500)	The tax category for the applied VAT should be created, as described in Tax Zones and Categories: To Create a Tax Category and Tax Zone for VAT.
Tax Zones (TX206000)	The tax zone for VAT that will be used in the vendor's settings should be created, as described in Tax Zones and Categories: To Create a Tax Category and Tax Zone for VAT.
Taxes (TX206000)	The value-added tax (VAT) with the needed settings and an exempt VAT should be created, as described in Value-Added Taxes: To Create a General VAT and Exempt VAT.
Multiple data entry forms	Taxable documents have been created in the needed financial period. For details, see: AR Documents with VAT: To Process an AR Invoice AR Documents with VAT: To Process a Credit Memo AP Documents with VAT: To Process an AP Bill AP Documents with VAT: To Process a Debit Adjustment Cash Entries with Taxes: To Process a Cash Entry with VAT Taxable Sales with Freight Charges: Process Activity Tax Entry from GL: Process Activity Direct Tax Payment: To Create a Tax Bill for a Tax Agency Direct Tax Payment: To Create an AP Bill with a Direct-Entry Tax

Settings That Affect the Workflow

The following settings and entities should be specified and defined, respectively:

The following general ledger settings should be specified on the Posting Settings tab of the General Ledger Preferences (GL102000) form:
- Make sure that the Automatically Post on Release check box is selected. This setting causes GL batches to be immediately posted after they are released.
- Clear the Generate Consolidated Batches check box to cause every AR transaction you enter to be posted as an individual batch to the general ledger. (When this check box is selected, the system consolidates into a single batch all transactions in the same currency posted to the same period for all documents being released.)
The following accounts payable settings should be specified on the General Settings tab of the Accounts Payable Preferences (AP101000) form:
- Select the Hold Documents on Entry check box in the Data Entry Settings section. This setting gives the created AP bills the On Hold status.
- Clear the Require Vendor Reference check box in the Data Entry Settings section. This setting means that you do not have to enter a payment reference number in the Vendor Ref. box when creating an AP bill on the Bills and Adjustments (AP301000) form.
- Make sure that the Automatically Post on Release check box is selected in the Posting Settings section. This setting causes AP bills to be automatically posted to the general ledger once they are released.

Validation of Configuration

To make sure that all configuration has been performed correctly, we recommend that in your system, you prepare and release a tax report for VAT by performing instructions similar to those described in Tax Report for VAT: Process Activity.