AP-Foreign Invoice with VAT

Hi

As per document no. 1413879.1,

Question 14: The client requires to enter a foreign invoice, where the vat tax amount is not payable to the supplier, but to the Government. This would indicate to use self assessed explanation code of U, but the vat tax amount should not be expensed, as it is recoverable and will thus contra with the credit, is this possible?

Answer 14: Set-up: 1. tax rate area with two lines, one for 20 % (offset PR1, debit recoverable) and the second for 20 % (offset PR2, credit recoverable) 2. PT AAIs, one for PTPR1 and one for PTPR2, pointing to two different tax accounts. Test: entered a voucher for 1000 taxable amount and used tax explanation code V and the tax rate area described above. Test result: debit expense account 1000, credit trade account 1000, debit PTPR1 AAI account 200 and credit PTPR2 AAI account 200.