Transfer Postings for Invoice Items Whose Usage Changes
The Secondary Events program creates postings to transfer the VAT on any invoice items whose actual usage does not match their planned usage.
Prerequisites
You have already identified which items' usage has changed. Such changes are recorded by the Automatic Tracking of Invoices for APC function, and by the following reports:
These programs all record the change of usage in the secondary events table. This entry is then processed by the Secondary Events program.
Example
You commission an engineer to design a lathe, which you intend to manufacture for the purposes of selling. You enter the engineer's invoice using the tax code P2, and you assign the invoice item to the intermediate asset. This tax code is for deferred VAT on purchases of materials and services.
You pay the invoice, and run the Deferred Tax Transfer program to transfer the VAT to the input VAT account under the tax code PC. This tax code is for paid VAT on purchases of materials and services.
Note
If you select the accrual basis for VAT accounting, you do not need to run the Deferred Tax Transfer program, since the system creates the tax transfer documents directly from the Secondary Events program.
However, instead of selling the lathe, as originally intended, you use it yourself. To this effect, you transfer the costs to a new asset master for the lathe.
However, you must now repost the VAT as VAT on purchases of assets, using the tax code V9. This tax code is for paid VAT on purchases of assets. The Automatic Tracking of Invoices for APC function automatically detects this invoice item and creates an entry in the secondary events table, recording that the usage has changed.
When you run the Secondary Events program, it creates an accounting document to transfer the VAT and post it to a new G/L account.