AR Documents with VAT: Generated Transactions
As you process AR documents with VATs, you create and process an AR invoice and a credit memo. To update customer balances, the system generates the GL transactions described in the following sections.
Transaction Generated for an AR Invoice
When you create and release an AR invoice, the system generates the following general ledger transaction:
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Accounts Receivable account | The AR account of the customer specified on the Customers (AR303000) form | Amount + tax amount | 0.00 |
| Asset/income account | The sales account specified for the non-stock item on the Non-Stock Items (IN202000) or for the document line on the Invoices and Memos (AR301000) form | 0.00 | Amount |
| Tax Payable account | The Tax Payable 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 on the Financial tab of the Invoices and Memos form.
Transaction Generated for a Credit Memo
When you create and release a credit memo, the system generates the following general ledger transaction:
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Asset/income account | The sales account specified for the non-stock item on the Non-Stock Items (IN202000) or for the document line on the Invoices and Memos (AR301000) form | Amount | 0.00 |
| Tax Payable account | The Tax Payable account of the VAT applied to the document, specified on the Taxes (TX205000) form | Tax amount | 0.00 |
| Accounts Receivable account | The AR account of the customer specified on the Customers (AR303000) form | 0.00 | Amount + tax amount |
You can view the reference number of the GL batch on the Financial tab of the Invoices and Memos form.