You must activate the unrealized VAT functionality before you can use it.

Note
This feature is available only if the Sales taxand Unrealized sales taxconfiguration keys are selected.

1. Click General ledger> Setup> Parameters .

2. On the Sales taxtab, select Unrealized sales taxto enable the unrealized VAT functionality.

3. On the Number sequencestab, select the number sequences for the sales and purchasing tax invoice IDs. For more information, see Number sequences (form). Close the form.

4. Click General ledger> Setup> Sales tax> Sales tax codes .

5. Create a sales tax code for unrealized VAT. For more information, see Set up and use sales tax codes.

6. On the Generaltab, select the Unrealized taxcheck box for the sales tax code that you created in step 4. Close the form.

7. Click General ledger> Setup> Sales tax> Sales tax groups .

8. Set up a sales tax group to be used for unrealized VAT. For more information, see Set up and use a sales tax group.

9. On the Setuptab, add the sales tax code that you set up in step 4. Close the form.

10. Click General ledger> Setup> Sales tax> Item sales tax groups .

11. Create an item sales tax group to be used for unrealized VAT. For more information, see Create an item sales tax group.

12. On the Setuptab, add the sales tax code that you set up in step 4. Close the form.

13. Click General ledger> Setup> Sales tax> Ledger posting groups .

14. Set up a ledger posting group to be used for VAT. For more information, see Set up ledger posting groups for sales tax.

15. On the Generaltab, enter accounts in the Unrealized tax receivableand Unrealized tax payablefields. Close the form.