How To: Create a VAT Only Entry
Table Of Contents
Introduction
In some situations, you may need to record a VAT adjustment without entering a net invoice value. Khaos Control allows you to create VAT-only entries through the SP Ledger.
This method creates a transaction where only the VAT amount is recorded and reported in the Tax Register.
Typical uses include VAT corrections, VAT-only adjustments and accountant-directed VAT postings.
Create a VAT-Only Entry
- Open the [ Accounts | SP Ledger ] tab.
- Enter Edit Mode by pressing Alt + E or clicking Edit.
- Press F3 or click New to create a new entry.
- Use the lookup window to find the customer or supplier you want to create the VAT-only entry for.Note: Use the Supplier tick box to switch between customer and supplier records.
- Once selected, a new row will be added to the grid.
- Complete the transaction details, paying particular attention to the following fields:
| Field | Setting | |
|---|---|---|
| Post | Tick this option. | |
| Pay | Tick this option. | |
| Crd | Tick if the transaction should be posted as a credit, for example when creating a supplier credit on the **[ Supplier | Statement ]** screen. |
| S/P | Enter S for a Sales transaction or P for a Purchase transaction. | |
| N/C | Select the nominal account to post against. | |
| Currency | Select the currency the values should be entered in. Press F4 to choose an alternative currency if required. | |
| Conversion Rate | Update the exchange rate if necessary. | |
| Tax | Enter the VAT amount to be posted. | |
| TaxRt | Select the appropriate VAT rate. |
Tax Rate Guidance
The TaxRt field uses the VAT rates configured in Khaos Control.
- Use Exempt if you do not want the system to attempt to reclaim VAT.
- When entering a VAT invoice issued by a supplier in another EC country, Khaos Control may display a warning asking you to confirm that VAT can be reclaimed.
Additional Fields
The following fields can also be completed where required:
| Field | Description |
|---|---|
| InvDate | The original invoice date. |
| Description | An optional description of the transaction. |
| Created | The date of the invoice being entered. |
| Status Note | Optional note used to track approvals or processing status. |
Note: If the invoice date entered is today's date, Khaos Control will display a warning message before continuing.
- Press Ctrl + S or click Save.
Result
The VAT-only transaction is posted to the SP Ledger and the VAT value is recorded in the Tax Register without requiring a corresponding net invoice value.
Tips
- Double-check the TaxRt setting before saving, as this determines how the VAT is reported.
- Use Exempt if the VAT should not be reclaimed.
- Include a meaningful Description to make future audits and VAT reviews easier.
- Ensure the correct customer or supplier record is selected before posting.