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VAT Code on Transaction Rows

The VAT Code on Transaction rows setting is one that you will only need to use if you are using Tax Templates.

In the Nominal Ledger Transaction that is created when you mark an Invoice or Purchase Invoice as OK and save, the appropriate VAT Code will be copied to the V-Cd or T-Cd field in each Transaction row posting to a Sales or Cost Account. If you are using Tax Templates, there will usually be more than one VAT Code that can be copied in this way as a Tax Template can contain several VAT Codes.

The VAT Code on Transaction rows setting allows you to specify which VAT Codes will be copied to the Transaction rows posting to Sales and Cost Accounts. For ease and flexibility in reporting, it is recommended that you choose the All VAT Codes option as shown in the illustration below. In particular, when defining a Key Financial Ratios or VAT report, the All VAT Codes option will allow you to use the VATRESULT and VATBALANCE commands with any VAT Code.

In the Invoice illustrated below, the Tax Matrix shows that the sale of an Item will be taxed using two taxes (i.e. two VAT Codes)—

In the resulting Nominal Ledger Transaction, the VAT Code that will be copied to the T-Cd field in the Transaction row posting to the Sales Account will depend on the option chosen in this setting as follows—
First VAT Code
The first VAT Code in the Tax Matrix will be copied to the T-Cd field in the Transaction row posting to the Sales Account.

All VAT Codes
Every VAT Code in the Tax Matrix will be copied to the T-Cd field in the Transaction row posting to the Sales Account.

No VAT Code
No VAT Codes will be copied to the T-Cd field in the Transaction row posting to the Sales Account.

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Settings in the Nominal Ledger: