VAT on self invoice

[DMHERSH]

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]

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