Credit Memo and EBTax

Hi All

We have an interesting scenario.

Currently AP process input vat in to say gl account 101 using code ''invat''. if we process a credit note AP will post the tax credit to 101 using the same classification code.

Similarly if AR Process the transaction output vat goes to 121 using code OUVAT. AR Credit note will revrse the liability by debiting the same account. However, the requriement is

whenever an AP credit note is created in AP, system, must post it to 121 using OUVAT and AR Crdit note should post to INVAT....

Or the rule from tax autthority is to post RTV credits to OUTPUTVAT and RMA Debits to INVAT..