When does Input VAT get added? On GRN or only on PN?

[michellepace]

Hi there,

I entered in a GRN for the month of May. My collegue paid the supplier but actually forgot to create a supplier invoice (PN). Of course we have closed off the month of May for VAT.

Question 1:
Will the VAT already have been allocated in the month of May when we did the GRN? So if I go and do the supplier invoice for the month of May, it's not going to throw my VAT out?

Question 2:
If I wanted to check for myself, where can I go and check to see if the GRN did infact allocat it's vat to our May INPUT Vat?

Thanks very much in advance,
Michelle

[Neville Bailey]

Question 1:
Will the VAT already have been allocated in the month of May when we did the GRN?

No, the input VAT only gets processed when the supplier invoice is processed.

So if I go and do the supplier invoice for the month of May, it's not going to throw my VAT out?

No, it will not. Because you have already closed off VAT for May, the VAT for the supplier invoice will be added to the next VAT period, even if the supplier invoice is dated in May.

Question 2:
If I wanted to check for myself, where can I go and check to see if the GRN did infact allocat it's vat to our May INPUT Vat?

See my comments above.

[TheborgAlli]

I been wanting to ask same question since we encounter same problem. happy to get the answer.

[michellepace]

Hi Alli, this really is helpful forum. I wanted to add to the above: there is a way to workout/check when the input vat gets added, and it’s very simple.

Open the Demo company, do a GRN with today’s date. Now check if the vat has been added via: View > .i think General Ledger > Tax > reports / current period. You’ll see it’s not there. Only PN’s are there and returns and debits. Repeat and make a supplier invoice (PN). Finally make a supplier invoice with a date coinciding in a closed tax period... view the current tax report again - the PN’s vat should be in there

(Or even better than using the demo company is to make a backup of your own, play around with above, once done restore the backup. I always find it much easier to learn using your own data)