Automating VAT calculations during entries


When you create a journal entry for a transaction, Sage Active automatically calculates the associated tax amount if a relevant tax code is specified in the account settings within the chart of accounts.

French legislation only
The Cash VAT scheme applies to the current fiscal year and once set up, you cannot change to the VAT on debit regime. You can however derogate from the VAT scheme if needed.

The automated tax calculation, as explained earlier, is carried out in the journals for sales invoices, purchase invoices, credit notes received and credit notes issued.

The steps to assign a tax code to a ledger account are as follows:

  1. Access the Chart of accounts.

    Configuration > Accounting – Chart of accounts

  2. Edit an account ( ).
  3. Attach a Tax code in the Identification tab if there is not one provided.
  4. Save your changes (Update).

When you perform an entry with an account that has a tax rate attached:

  • The line for the tax will appear automatically;
  • The amount for the tax will be recorded in the account that is associated to the tax code;
  • The taxable amount of the entry is taken into account on the VAT return.

 

German legislation only
When a tax code is assigned to an account in the chart of accounts, you cannot change the tax code in a journal entry line.

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