Sales Tax - Version 12
For us, the recoverable VAT on purchases is an Asset Account.
The Sales VAT we receive is a liability account as it must be paid back to the government.
I am assuming that the Tax Codes are now common to AP and AR (as opposed to 11i where they were separate). I am assuming this because I saw that all tax codes set up are available to be chosen in Sales Order Entry (even if they are AP specific, like the Self Invoice).
In the Tax Accounts setup of a Tax code, there is only one field for the GL account: Tax Recoverable/Liability. How can I differentiate between the asset and Liability account? Or am i obliged to duplicate my common tax codes and specify which is for sales and which for purchases (which will lead me to ask how to limit them being chosen in SO entry)