Setting the Partial VAT Classification on a Nominal and Account

IRIS Financials automatically calculates the irrecoverable VAT and posts an accounting entry for you. Each nominal, account and analysis account has an Indices called PARTIAL_VAT.

Nominals, accounts and account analysis fields (where they are linked to a ledger) are mapped to the applicable PARTIAL_VAT category as part of the set up process. If you add any new nominals, accounts or account analysis fields, you will need to map these as they are created.

Partial VAT Categories

The partial VAT categories are as follows:

Fully Irrecoverable - No VAT is reclaimed

Partly Recoverable - VAT is partly recoverable

Blanks - All VAT is fully recoverable

If a document contains different partial VAT categories, the partial VAT category that claims the least amount of VAT is used.

What Happens when there is a Partial VAT Conflict when Posting Documents?

Where there is a clash between nominals, accounts or Data Analysis Fields (DAFs), IRIS Financials adopts the worst case scenario. If a nominal is fully recoverable, but the account is fully irrecoverable, IRIS Financials will not attempt to reclaim any VAT.

Example:

An invoice is posted using Nominal 208000, which is classified as Partly Recoverable. The Account being posted to is FIN which is Fully Irrecoverable.

As no VAT is recoverable from the Account, no VAT will be claimed from the transaction line.

Setting the PARTIAL_VAT Indices on Nominals

  1. Go to MaintenanceNominals, then select the applicable nominal.

  2. Select Indices, then select EDIT.

  3. Select PARTIAL_VAT, then make the applicable selection and select SAVE.

Setting the PARTIAL_VAT Indices on Accounts

  1. Go to MaintenanceAccounts, then double-select to select the applicable ledger.

  2. The list of accounts displays. Select the applicable account, then select Indices.

  3. Select EDIT, then select PARTIAL_VAT, then make the applicable selection and select SAVE.

Setting the PARTIAL_VAT Indices on Account Analysis Fields (where they are linked to a ledger)

  1. Go to MaintenanceAccounts, then double-select to select the applicable ledger.

  2. The list of accounts displays. Select the applicable account, then select Indices.

  3. Select EDIT, then select PARTIAL_VAT, then make the applicable selection and select SAVE.