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VAT on self invoice

DMHERSH

Member
I am building a VAT solution for what is known as a self invoice

Basically my supplier is to be paid 1000 I am to create an invoice to myself which will be considered both AP and AR.

The solution I have created using 3 transactions and special tax rate/areas is as follows;

1. Supplier Voucher

Debit: Expense 1000
Debit: VAT AP recoverable 200
Credit: Supplier Master 1000
Credit: VAT offset account 200

2. Customer Invoice to myself
Debit: Customer Master 1200
Credit: VAT AR recoverable 1000
Credit: Expense offset account 200

3. Customer Credit Note to myself
Debit: Expense offset account 1000
Debit: VAT offset account 200
Credit: Customer Master 1200

The solution works fine for the bookkeeping issues. BUT I have not been able to get the tax tables to reflect only the AP & AR recoverable amounts and ignore what is posted to the VAT offset account.

Any help or direction would be appreciated

David
 

rsvconsulting

VIP Member
The VAT offset account zeroes out and thus balances without any further intervention. Is that not the outcome you are seeking?
 
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