India - VAT doesnt calculate

PPP

Hi,
]
I have created the following setups for calculating VAT in a purchase transaction But . inspite of giving all the relevent setups the value is not apearing. Can anybody help me is there anything i missed out.

Thanks in anticipation.

Here is the update of setups.

VAT setup

Business posting I have created as LOCAL
Product posting I have c reated as VAT4
Posting setup i created a combination as Local VAT and given VAT 4% and the relevent GLs.
Sales TAx setup
TAX Group VAT4,VAT applicable true
TAx Jurisdiction - TAX type i had given VAT and the State code
Tax Details - given TAX Jurisdiction and TAX GRoup as VAT4
Also defined area and area locations.
Both the location i am using for vendor and the despatch location also same.

Create Structure CARD with VAT as tax group
and other Charges as Security Cess.

Deep

Which version u r using?
4.0 SP3 onwards you need not to setup VAT through traditional VAT Setup.
You can use the Sales Tax setup and map both VAT and sales tax through Tax jurisdictions and Tax area locations.
This just works perfect and the entry is stored in Tax ebtry table. The nature of Tax i.e. VAT or CST is stored in Detailed Tax entry table.

lally

Mr. Deep,
I could not understand your valuable statement.
If I did not fill any values in Vat posting setup ( that means vat. Bus posting group, vat prod.posting group , vat % , Vat calculation type all the fields are blank) then what i have to assign in customer card , item card for the fields vat Bus, vat product posting group.

Please clarify me about vat setup.

PPP

Thanks a lot Deep foir your assistance.
And now the value is getting calculated but it is not refelecting in the GL account given in the state master.
it is adding the tax amount to the purchaSe account.


e.g qty 200 x Rate 16/- amount 3200

4% Tax 128.00
Cess 1% 1.28

Total is 3329.28

3329.28 is gettng credited to Creditors A/c
128.00 /- should post to the tax account
3200/- should go the purchase a/c

where as i am getting 3328 is getting posted in the purchase a/c

Deep

Check your configuration.

1.Create tax groups as default ones (Items falling under x% tax).
2.In states table enter Tax accounts statewise (or as you like the values to be posted)
3.Create Tax Jurisdictions with VAT and CST (these two atleast) and others if you transact with many states. You can make as MH-CST,AP-CST, MP-CST.... and so on. Create one with your state code for VAT also, like AP-VAT. Enther the Tax Type applicable, whether CST or VAT.
4. Configure the Tax details table as per the TAX rates/norms.
5. Create Tax Areas (as default ones).
6. Map the receiving/despatch location against state codes with the Tax Area codes in the Tax details table.
... and you are done...

Just remember that all the customers and vendor masters MUST have correct state codes.
In the PO/SO, select the Sales Tax structure only (No traditional VAT one).

lally

I am working on 4.0 sp3 HF6
I done the same way what you explained , I did not define the Vat posting setup.
That means in Vendor card , Item card Vat business posting group fields are blank.
When I am going to create the purchase order but I am getting the below error

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Microsoft Business Solutions-Navision

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The VAT Posting Setup does not exist. Identification fields and values: VAT Bus. Posting Group='',VAT Prod. Posting Group=''
What is the problem ?
Please helpme.

coder

Hello,

You need to create a VAT Bus. Posting Group and VAT Prod. Posting Group with 0% VAT and you called it NOVAT in VAT Prod. Posting Group. It is mandatory to create a VAT Prod. posting group when you use sales tax setup for VAT calculation.

Regards,
Rakesh

lally

Thanks,

I done all setups what Mr. Deep said

I assigned the vat posting group , vat product posting group ( vat = 0 ) in vendor card , Item card.

I created a structure for sales tax .(Only sales tax).
But system is not caluclateing any sales tax value .
What is the problem.

Deep

Its working fine and works fine.

That VAT setup you need to create, but is not used.

lally

Thanks,

I done all setups and i define the Vat posting setup .
But it is not caluclating any sales tax values .

I could not understand the where is the problem .

Please help me....................... ](*,) ](*,) ](*,)

ssingla

You need to do the following:

VAT bussiness Posting group : NOVAT
VAT Product Posting group : NOVAT
Vat Posting Setup : One line with combination of both and select "Indian VAT" in the type field and no tax% and accounts.

In the sales tax group define the following :
a) States
b) Tax Groups
c) Form Codes
d) Tax Jurisdiction (VAT & CST with their respective types). The VAT jurisdiction should have your local State Code and for CST you can leave blank. Tax Account (Purchase & Sale) should be defined. For areas like Chandigarh/Daman/Pondichery you might need different CST groups as the CST rate from these places are different. You can also handle this with different "C" forms but I do not recommend this practice.
e) Define Tax Details with the relevant Tax Jurisdiction and Tax group code with the effective date & Form Code. You need to define "Creditable" field for all the VAT combinations where VAT receivable is available. For all other the amount of tax will be added in the purchase amount.
f) Define Tax Areas with the releavant tax Jurisdiction. This is normally equal to tax jurisdiction defined unless you have Cess or some other tax applicable along with Sales Tax.
g) Define Tax Area Locations for various combinations of receiving and sending locations for customer and vendor.
h) Define Tax Area code on the items and form code/tax area code on the customer and vendor.
i) Define structure for Sales Tax and check the Purchase and Sales Invoice/Order.

lally

Thanks Mr. sandeep sir,

Let me know one thing .

In Tax Groups there is field called Vat applicable .
Do I need to place a check mark in that field when I am creating tax group? :-k
when we have to place a check mark in that field?
Please explain about that field.

What is the use of the schedule setup in sales tax setup ?

Could u throw one example about schedule .