Tax Report for VAT: Generated Transactions
As you release a tax report, you create and process an AP bill. To update the balance of the vendor (tax agency), the system generates the GL transaction described in the following section.
Transaction Generated for an AP Bill for the Tax Agency
When you create and release an AP bill, the system generates the following general ledger transaction:
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Tax Payable account | The Tax Payable account of the tax specified on the Taxes (TX205000) form | Accumulated amount of Output taxes | 0.00 |
| Accounts Payable account | The Accounts Payable account of the tax agency, specified on the Vendors (AP303000) | 0.00 | Accumulated tax amount (Output taxes–Input taxes) |
| Tax Claimable account | The Tax Claimable account of the tax specified on the Taxes form | 0.00 | Accumulated amount of Input taxes |
You can view the reference number of the GL batch on the Financial tab of the Bills and Adjustments (AP301000) form.