In some countries (e.g. Poland and Ukraine), once an Invoice has been posted to the Nominal Ledger, the posting to the VAT Input Account can be moved to a later month. This might be appropriate if the Invoice has been received before the goods have been delivered. This is known as a "VAT Correction" or "VAT Movement". This function provides an easy way of doing this.

For the function to have any effect, all changes to the Invoice must first have been saved (use the [Save] button), and the Invoice must have been approved. You should also have defined an Input A/C Corr. (Input Correction Account) on flip C of each VAT Code used in the Invoice.

When the function is selected, a new record is created in the VAT Corrections setting. It is opened in a new window, entitled 'VAT Correction: New'. This means that it has not yet been saved.

Enter the new date for the VAT posting in the Trans. Date field in the header. Then approve the VAT Correction record by checking the OK box in the footer and saving.

The results in the Nominal Ledger are twofold:

In the Transaction created from the original Invoice, the posting to the Input VAT Account is replaced by one to the Input VAT Correction Account.

A new Transaction is created from the VAT Correction record, reversing the posting to the VAT Correction Account and debiting the Input VAT Account.

You can view past VAT Correction records using the VAT Corrections setting in the Purchase Ledger. You can also enter new records in the setting: type the Invoice Number into the new record to bring in the details of the Invoice.

Once the VAT Correction has been approved, its date can also be changed if necessary. To do this, open it, choose 'Update Trans. Date' from the Operations menu and enter the new date in the Trans. Date field.

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