Deferred Tax- Unearned Revenue
I have a question regarding Deferred Tax?
We have setup Accounting Rules within AR to Defer Revenue for 12 months.
We have a Invoice for $1200.00
At creation of the Invoice the accounting will be
Dr Receivables
Cr Unearned Revenue
Cr VAT
We then run revenue recognition each month to move the Unearned Revenue to Revenue
Can this system do the same for VAT.
e.g The VAT will hit the interim VAT account upon creation. As revenue recognition is run we would like it to move the VAT from the interim Account to the VAT ouput account.