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Steps In Detail
STEP I ---CREATION OF ACCOUNT VALUES
Define Account Values in Accounting Flex field Structure:- NAV>FINANACIALS >FLEX
IFIELDS>KEY>VALUES
Create the following 4 account values: TWO OF ASSET ACCOUNT TYPE
1. Vat Interim Recovery Account.
2. Vat Recovery Account.
TWO OF LIABILITY ACCOUNT TYPE
1. Vat Interim Liability Account
2. Vat Payable Account
NAV: India Local Purchasing > India VAT/Service Tax > Setup > Regime Registratio
ns>REGISTRATIONS
Regime Means Environment
1. Select Regime As
Give A Description.
Give The Following Details:-
Give Sequence No As 1
Enter the registration details in the
opriate
1. If the value were set to Yes in this field, it indicates that the Excise Invoic
e number, wherever available would be considered as VAT Invoice Number.
2. If the value were set to No , setup made in the VAT Document sequence setup woul
d be considered for VAT Invoice number generation.
RECOMMENDED STEP: SET AS NO
NTORY ORGANISATION.
If the organization does NOT have any RG entries [Excise Invoice], then set the
option to NO .
If the option is set to YES , then application will pick-up the excise invoice numb
er generated at the time of sales order as the VAT invoice number
STEP 3. CREATION OF VAT REGIME-TAX TYPES (SEE SCREEN 3)
NAV: India Local Purchasing > India VAT/Service Tax > Setup > REGIME REGISTRATIO
NS> TAX TYPES
GO to Tax Types tab
Select sequence as 1 AND .Select the tax type as
ion
Description
Select the account code combination
Enter the percentage and details
STEP 7: DEFINING TAXTYPE (OUTPUT TAX) (See Screen 7)
Accounts Payables.
YES FOR PO-AP CYCLE INPUT TAX CLAIM (VAT CLAIM). Then set to YES
NO Input claim is not available then set to NO.
STEP 12.ASSIGNMENT OF THE ITEM TEMPLATE (See screen 12)
INDIA VAT/SERVICE TAX>SETUP>VAT>ITEM CLASSIFICATION
The item template defined in step 11 is assigned to the vat items
STEP 13 DEFINE VAT CLAIM TERMS.(see screen13)
NAV INDIA VAT/Service Tax Setup Vat Claim Terms Definition
1. Define the Term Name
Give No of Installments
2. Give Start Period as Immediate if needed to be Claim on the Same Day.
3. Assign to the Regime, Item Class, Regime Registration Number, Organization an
d its Locations.
(Party Type is, if the Regime Defined is an Inventory Organization then the Part
y Type Will default as IO-Inventory Organization).
Immediate claims the first installment of vat immediately
Next Month Claims the first installment of VAT in the next month from the receip
t date
Next Quarter Claims the first installment of VAT in the in the first month occur
ring after 3 months from the receipt date
Next Financial Year Claims the first installment of VAT in the first month occur
ring after 12 months from the receipt date.
For option other than Immediate , you can define the day of the month on which you
wish to claim the first installment. The options available are:
Same Day Claims the first VAT installment on the same day as the receipt
Last Day Claims the first VAT installment on the last day of the month
First Day Claims the first VAT installment on the first day of the month
Other Day Claims the first VAT installment on any other day of the month as spec
ified by you. In case a month does not have the specified date, the claim will b
e made on the last day of that month. For e.g. if you specify 30, claim for Febr
uary will be made on 28th / 29th as the case may be.
NOTE: -Recommended step for claim terms is Immediate and on the same day.
STEP 14 DOCUMENT SEQUENCE (see screen 14)
NAV>INDIA VAT/Service Tax: Setup>Vat
Document Sequence
VAT AUTHORITIES
VAT AUTHORITIES.IND