AP Documents with VAT: Generated Transactions
As you process AP documents with VATs, you create and process an AP bill and a debit adjustment. To update vendor balances, the system generates the GL transactions described in the following sections.
Transaction Generated for an AP Bill
When you create and release an AP bill, the system generates the following general ledger transaction:
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Expense account | The Expense account specified for the non-stock item on the Non-Stock Items (IN202000) or for the document line on the Bills and Adjustments (AP301000) form | Amount | 0.00 |
| Tax Claimable account | The Tax Claimable account of the VAT applied to the document, specified on the Taxes (TX205000) form | Tax amount | 0.00 |
| Accounts Payable account | The AP account of the vendor specified on the Vendors (AP303000) form | 0.00 | Amount + tax amount |
You can view the reference number of the GL batch Financial tab of the Bills and Adjustments form.
Transaction Generated for a Debit Adjustment
When you create and release a debit adjustment, the system generates the following general ledger transaction:
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Accounts Payable account | The AP account of the vendor specified on the Vendors (AP303000) form | Amount + tax amount | 0.00 |
| Expense account | The Expense account specified for the non-stock item on the Non-Stock Items (IN202000) or for the document line on the Bills and Adjustments (AP301000) form | 0.00 | Amount |
| Tax Claimable account | The Tax Claimable account of the VAT applied to the document, specified on the Taxes (TX205000) form | 0.00 | Tax amount |
You can view the reference number of the GL batch Financial tab of the Bills and Adjustments form.