- Product: Alma
How to apply Use Tax, or Government VAT Tax, to an invoice?
The outline is explained in the Online Help regarding "Creating an Invoice From a PO or Manually":
"If VAT is entered for this invoice, and the vendor is noted as liable for VAT, and the institution has an associated governmental vendor, a separate invoice is created for this tax and linked to this invoice. The linked invoice includes only the VAT. For details on configuring liability for tax and a governmental vendor, see step 2 and step 5 in To add a vendor and vendor account:. See also How Alma Handles VAT Payments.
After this invoice is paid/exported, the governmental invoice is also paid/exported and appears on the Find Invoices page with the name <invoice number>_RT, where <invoice number> is this invoice’s number and _RT stands for Report Tax (the governmental invoice)."
The steps are:
- Have a Vendor who has Vendor Type: Governmental. The vendor is "Liable for VAT". Indicate "Tax Percentage", e.g. 10.1.
- Create an invoice for the vendor for which POLines are created, as usual.
- In the Invoice, for VAT, click:
- Report tax
- VAT is zero
- VAT Type will be "Exclusive", or, "Line Exclusive" (see below or click here for "VAT Calculation - Example").
- Process the invoice as usual.
- Save and Continue > Invoice status is likely: In Approval.
- Once approved, Invoice Status is: Ready to be Paid.
- Again "Save and Continue" > confirm that "Invoice is set with Report Tax. Tax invoice will be created".
- Depending on ERP export, find the Invoice after step 7 or wait for ERP to run.
- Now find two invoices, one with extension: _RT.
- Handle the invoice as preferred (e.g. keep as Internal Copy, or export to ERP).
Detailed new presentation found here: Invoicing – How to pay Use Tax (Reporting Tax) to a governmental vendor when paying invoice
Find the Online Help regarding "VAT Calculation – Example"
Learn more about "How Alma Handles VAT Payments".
Images and steps exist in the June 2014 Release Notes under "Support for Separate Vendor for Use Tax/VAT": https://knowledge.exlibrisgroup.com/Alma/Release_Notes/050_2014/07_June_2014
- Article last edited: 19-APR-2021