Government Tax as separate Vendor for Use Tax/VAT

Question

How can Use Tax , or Government VAT tax, be added to an invoice?

Answer

There is a specific workflow which supports creating an invoice for (US) Government tax and the "Use Tax/VAT" functionality. 

The workflow is explained in the Online Help:

"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 workflow depends on export to ERP: https://developers.exlibrisgroup.com/alma/integrations/finance

The steps are:

1. Ensure your environment exports to ERP / Finance integration profile.

2. Have a Vendor who is Vendor Type: Governmental.

3. The vendor from which purchases are created is liable for VAT.

4. Create an invoice for the vendor for which POLines are created, as usual.

5. In the Invoice, for VAT, click:

-- Report tax
-- VAT is zero
-- In most sites the VAT Type will be "Line Exclusive".

6. Complete the invoice as always.

7. Save and Continue > Invoice status is likely: In Approval

8. Next, Approve > Invoice status is likely: Ready to be Paid

9. The export of Invoices runs as a daily job

10. The invoice is exported

11. Search again for the invoice, it is in status: Ready to be Paid

12. Again Save and Continue > confirm that "Invoice is set with Report Tax. Tax invoice will be created".

13. Now there will exist two invoices, one with extenion:  _RT.

14. Handle the invoice as preferred (e.g. keep as Internal Copy, or export).

Additional Information

The steps are explained in great detail in the June 2014 Release Notes. Please refer to the section: "Support for Separate Vendor for Use Tax/VAT". The June 2014 Release Notes are found here: https://knowledge.exlibrisgroup.com/Alma/Release_Notes/050_2014/07_June_2014

The Online Help page is: https://knowledge.exlibrisgroup.com/Alma/Product_Documentation/010Alma_Online_Help_(English)/020Acquisitions/030Invoicing/020Creating_Invoices#VAT_Calculation_.E2.80.93_Example

• Article last edited: 09-MAR-2018