How to: Revert VAT on Payment Discounts

If a payment discount has been calculated on the basis of an invoice amount that includes VAT, you have the possibility of having the payment discount part of the VAT amount reverted when the payment discount is granted.

To revert VAT on payment discounts

  1. In the Search box, enter General Ledger Setup, and then choose the related link.

  2. On the General FastTab, select the Adjust for Payment Disc. field.

  3. Open the VAT Posting Setup window, and select the Adjust for Payment Discount field on the lines for which you want to use the feature. If the column is not visible, open the shortcut menu for the column headings, and then choose Choose Columns to add it.

    Note that you must activate the Adjust for Payments Disc. field in both the general ledger setup in general and the VAT posting setup for specific combinations of a VAT business posting group and a VAT product posting group.

See Also

Tasks

How to: Determine Base Amounts for Payment Discounts on Sales

Other Resources

How to: Correct VAT