Overview

Essentially, the process to create a Payable with VAT (Valued-added tax) Reporting will be the same as that of creating any other Payable. However, there are some important differences that should be noted. Use this article to learn about the differences that you need to be aware of when creating a Payable with VAT Reporting.

In order to successfully extract data from Accounting Seed into the Avalara VAT Reporting, the following information should be included on a Payable:

• Ledger - a transactional ledger that includes the VAT Country and Company Code.
• Vendor - if the VAT Business ID Number Required checkbox is selected on the VAT Tax Group, the Vendor or Contact must include a VAT Business Identification Number and VAT Country.
  Note: Typically, there is only one VAT identification number per country. If there is a situation where more than one VAT identification number is necessary, please contact your Avalara VAT Reporting representative. 
• Payable Line - each line should include a valid VAT Tax Group. Tax Groups are automatically downloaded when you install the VAT Reporting extension package. To view the available Tax Groups, from Accounting Home, under the Master Data Setup, select Tax Groups. 
  Important: A Payable must include all VAT Payable Lines or all non-VAT Payable Lines. It cannot include a combination of both VAT and non-VAT Payable Lines. 
  
  The example screen below shows a Payable with three lines that include the same VAT Reporting Tax Group. In addition, the “Is VAT Related” field is checked on each Payable Line. If the Tax Group entered on the line is a VAT Reporting Tax Group, this field is automatically checked at the time the Payable Line is created and saved.
  
  
  Note: Click here to view the above image in full screen. 
  

Do you want to:

• Create & Post a Payable
• View the Payable in VAT Reporting
• Unpost a Payable

Create & Post a Payable

When you post a Payable that is VAT (value-added tax) related, the normal debits and credits will be created, as well as the Input VAT entry. The Input VAT will equal the total amount of taxes on the Payable Line(s).

1. Navigate to Accounting Home and under Cash Out click Payables (Vendor Invoices).
2. From the Payables list view, click New. The New Payable dialog box displays.
3. Complete the required fields, which display with a red asterisk. 
   1. Posting Status
   2. Payee Reference
   3. Issue Date
4. Select a Vendor or Contact. 
   Important: Payee cannot be an Employee when a VAT Tax Group is selected on a Payable Line. 
5. (Optional) Complete additional fields.
6. Click Save. The Payable record displays.
7. Scroll down the page to the Payable Lines related list. To add Payable Lines, click Mass Add/Edit Rows.
8. Click Add New Line.
9. (Optional) Click the Lookup icon to search for and select a Product for the line. 
10. Enter the Quantity.
11. Enter the Unit Cost - the cost per unit. This is a required field.
    Important: The Total field is recommended to be read-only on the user interface. The amount that is entered in the Unit Cost field multiplied by the Quantity will determine the Total (Quantity x Unit Cost = Total). The Total field will also include the Tax Amount. If the Quantity field is blank, upon saving, a Quantity of one will auto-populate for the line.
    
    The Total field is controlled by Field Level Security (FLS). Therefore depending upon the permissions granted through a user’s Profile and/or Permission Set(s), the Total field might be editable. However, editing this field directly in the UI is NOT recommended.
    
    
12. Enter or search for an Expense GL Account. 
13. Click the Lookup icon to search for and select a Tax Group for the line. 
    Tip: To view all of the available Purchases Tax Groups for your country, enter the first three letters of the Tax Group. For example for Great Britain, enter “GBP” in the Lookup search textbox and click Go. Otherwise, you can view all of the available Tax Groups from Accounting Home, under Master Data Setup | Tax Groups.
14. (Optional) Add additional lines. 
15. At this point, you can select one of the following: Save & Complete, Save & Post, etc. 
16. If the Payable was posted, click the All Activities tab. The All Activities tab will include a hyperlink for each VAT Reporting file that is uploaded (posted and unposted records).
    
    
    
    
17. Click the hyperlink to view the details, including the filename that was uploaded to Avalara VAT Reporting.
    
    
    

Note: Posted records can be viewed in Avalara VAT Reporting. 

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View the Payable in VAT Reporting

1. To view the Payable in Avalara VAT Reporting, login your account. 
2. From the Transactions menu, select Processed Documents.
   
   
   
   
3. (Optional) Select/enter any or all of the following, and then click Apply. 
   1. Company
   2. Processed After
   3. Processed Before
   4. Filename Contains
   5. Only Show Manual Documents (Only applicable if manual documents were created in Avalara VAT Reporting.)
4. Under File name, click the hyperlink for the Payable that you want to view. 
   Note: In addition to the Invoice Number, each filename includes a date and time stamp. This information is included so that each Payable/Invoice Number can be uniquely identified. 
5. Click the Invoice Number hyperlink.
   
   
   
   
6. Click the Invoice Number hyperlink again to drill-down for viewing line item details. Then, scroll down the page to view each line, as necessary.
   
   
   

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Unpost a Payable

When you unpost a Payable, the original record will not be deleted in Avalara VAT Reporting. However, a copy (with a different date and time stamp) of the original record will be created with negative amounts to offset the original Payable entry. 

1. From Accounting Home, under Cash Out select Payables (Vendor Invoices).
2. From the appropriate list view, select the Payable that you want to unpost. 
3. Click Unpost. 
4. From the Payable Unpost intermediate screen, click Unpost again. The Payable record refreshes. 
5. To view the Payable in Avalara, log into your VAT Reporting Account. 
6. From the Transactions menu, select Processed Documents.
   
   
   
   
7. (Optional) Select/enter any or all of the following, and then click Apply. 
   1. Company
   2. Processed After
   3. Processed Before
   4. Filename Contains
   5. Only Show Manual Documents (Only applicable if manual documents were created in Avalara VAT Reporting.)
8. Under File name, click the hyperlink for the Payable that you want to view (the record that was unposted).
   Note: In addition to the Invoice Number, each filename includes a date and time stamp. This information is included so that each Payable/Invoice Number can be uniquely identified.
9. Click the Invoice Number hyperlink.
   
   
   
   
10. Click the Invoice Number hyperlink again to drill-down for viewing line item details. Then, scroll down the page to view each line, as necessary.
    
    
    
    The unposted record displays with negative amounts.
    Note: The Document Type will display as 1 - Purchase Document. For Payables, the Document Type will always display as 1 - Sales Document. This includes posted or unposted Payables.
    
    
    
    
11. Scroll down the page to display the Additional Document Data.
    Note: Since this Payable record was unposted the amounts will display as negative amounts.
    
    
    

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