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VAT Tax Entry in Accounting

Dear Gurus,

Could you please let me know,

whether the Tax entries will appear during payments (Vendor/Customer)?

Tax is applicable only for invoice or for payments also?

My question is for  Vendor Invoice we have the entries like below

    Inventory A/c               Dr (900)

    VAT receivable A/C      Dr (100)

    Vendor  A/C                         Cr (1000)

Similarly  for  Customer Invoice

  Sales A/C                  Cr (900)

  VAT Payables A/C      Cr (100)

  Customer A/C                        Dr (1000)

So, during payment how the entries would be?

case-1: Vendor Payment

   Bank A/c      Cr (1000)

   Vendor A/c   Dr (1000)



   Bank A/c             Dr (1000)

   Customer A/C      Cr (1000)

Is this how the entries will come or some other?

Please let me know



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