VAT Set up Steps

STEP I ---CREATION OF ACCOUNT VALUES

STEP II ---CREATION OF VAT REGIME-REGISTRATIONS
STEPIII - CREATION OF VAT REGIME-TAX TYPES
STEPIV - ORGANIZATION ASSIGNEMENT
STEP V- DEFINING VAT REGISTRATION NUMBER IN ADDITIONAL ORGANISATION INFORMATION
STEP VI- DEFINING TAX TYPES (INPUT TAX)
STEP VII -DEFINING TAX TYPES (OUTPUT TAX)STEP VIII- CUSTOMER VAT REGISTRATIONS
STEP IX - SUPPLIER VAT REGISTRATIONS
STEP X - DEFINING ATTRIBUTE TEMPLATE
STEP XI- DEFINING ITEM CLASS
STEP XII -.ASSIGNMENT THE ITEM TEMPLATE TO ORGANIZATIONS
STEP XIII- DEFINE VAT CLAIM TERMS
STEP XIV- DOCUMENT SEQUENCE FOR THE TRANSACTION TYPES
STEP XV CREATION OF VAT AUTHORITY
STEP XVI - CREATION OF GENERAL LEDGER JOURNAL SOURCE
STEP XVII - CREATION OF GENERAL LEDGER JOURNAL CATEGORY
STEP XVIII DOCUMENT SEQUENCE FOR THE TRANSACTION TYPES...............
STEP XIX CREATION OF VAT AUTHORITY...............
STEP-XX-- GENERAL LEDGER JOURNAL SOURCE..

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

STEP 2---CREATION OF VAT REGIME-REGISTRATIONS (SEE SCREEN 2)

DEFINE VAT REGIME
PRE-REQUISITES
Before You Enter the Accounts Information - Organization Additional Information,
You Must
Define Organizations
Define Locations
Organization Additional Information

NAV: India Local Purchasing > India VAT/Service Tax > Setup > Regime Registratio
ns>REGISTRATIONS
Regime Means Environment
1. Select Regime As

Value Added Tax

2. In Regime Registration Details

Give A Description.
Give The Following Details:-

Give Sequence No As 1
Enter the registration details in the
opriate

registration value column by giving the appr

Registration Type Primary Registration Number

Registration Name Registration Number
Registration Value Enter the Vat Registration Number.
Give Sequence No As

Enter Registration Type Others.

Registration Name Jurisdiction
Registration Value Enter the Jurisdiction Name.
Give Sequence No As 3
Enter Registration Type Others.
Registration Name Same Invoice No For Excise and Vat Regimes.
Registration Value N
NOTE: For Value Added Tax regime, you need to specify value for
ise and VAT Regimes attribute.

Same Invoice No for Exc

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.

AND DEFINE DOCUMENT SEQUENCE WITH RELEVANT TO THE INVE

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

Value Added Tax

AND give descript

Go to Tax details region

Select the VAT account values created in step 1
STEP 4. ORGANIZATION ASSIGNEMENT (SEE SCREEN 4)
NAV: India Local Purchasing > India VAT/Service Tax > Setup > REGIME REGISTRATIO
NS>ORGANIZATION
GO TO ORGANZATION TAB
1. Select the Organization type as Inventory Organization
2. Select the organization Name
3. Select the location for which we want to assign the VAT details.
Go to Registration details:
1. Assign the registration details for the particular organization.
STEP 5. DEFINING VAT REGISTRATION NUMBER IN ORGANISATION INFORMATION (see screen
5)
NAV>SETUP>ORGANIOSATION>ADDITIONAL INFORMATION
Go to Organization Additional information
In the Tax Info tab, in Vat region
Enter the Vat registration number of the particular location.
NOTE:ONCE THE REGISTARTION NUMBER HAS BEEN DEFINED IT HAS TO BE DEFINED IN THE RESPEC
TIVE ORGANISATIONAL ADDITIONAL INFORMATION.
STEP 6: DEFINING TAX TYPES (INPUT TAX) (SEE SCREEN 6)
SETUP>TAXES>TAXES LOCALISED >TAXES
Go to Tax localized taxes to define the tax types
Give the Tax Name

 Description
Select the account code combination
Enter the percentage and details
STEP 7: DEFINING TAXTYPE (OUTPUT TAX) (See Screen 7)

SETUP>TAXES>TAXES LOCALISED >TAXES

Go to Tax localized taxes to define the tax types
Give the Tax Name
Description
Select the account code combination
Enter the percentage and details
STEP 8 CUSTOMER VAT REGISTRATIONS (see Screen 8)
NAV>CUTOMER>ADDITIONAL INFORMATION
In Customer Additional Information Give The Vat Registration Number And Assessab
le Price (if any)
STEP 9 SUPPLIER VAT REGISTRATIONS (see Screen 9)
NAV>SUPPLIER>ADDITIONAL INFORMATION
In Supplierr Additional Information Give The Vat Registration Number And Assessa
ble Price (if any)
STEP 10: DEFINING ATTRIBUTE TEMPLATE (see screen 10)
NAV>India VAT/Service Tax > Setup >DEFINE ITEM CLASSIFICATION -new
Select item as Attribute Template
Select VAT Regime
Click New
STEP 11---DEFINING ITEM CLASS (SEE SCREEN 11)
India VAT/Service Tax > Setup >DEFINE ITEM CLASSIFICATION
Give the Regime Name
Give the Template name
Give the attributes

ITEM ATTRIBUTES :3 ATTRIBUTES ARE MANDATORY

1. APPLICABLE
YES APPLICABLE TO OM-AR CYCLE.
Vat Liability On These Transactions Will Be Accounted.
Note: - Items On Which Vat Liability Has To Be Claimed Has To Be Defined as Yes.
NO Not Applicable For Items.
No Attachment of Taxes at the Time of Transactions.
2. CLASSES OF ITEMS: - THIS IS MAIN FOR ACCOUNTING AND VAT CLAIM POINT OF VIEW.
1. RAW MATERIALS Claim To Be In Purchasing

Accounts Payables.

Cycle should be claimed as RAW MATERIALS.

Note: This cycle [Raw Materials] would be used only for those organizations, whi
ch deals with Production items [Raw Materials, WIP, etc.,]
2. CAPITAL GOODS CAPITAL ITEMS on which vat items have to be claimed should be d
efined as CAPITAL GOODS.
3. FINISHED GOODS Order Management
d be defined as finished goods.

Accounts Receivables CYCLE-VAT Liability shoul

4. OTHER GOODS RESIDUARY CATEGORY.

3. RECOVERABLE:Whether input tax claim of VAT Taxes can be availed.
VAT CALIM IN Purchasing

Accounts Payables CYCLE.

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

Select the Regime Code and Description.

In The Header Select The Registration Number, Select The Organization Number And
Organization Type And Its Location, and Enter The Start Date.
Assign to all The Document Type and with Respective Document Number. Give the St
art Number and Current Number. Give The Prefix and End Number If needed.
NOTE: Do the same way for all the Document Type for all the transaction type of Order
to Cash and Procure to Pay such as order type of OM, invoice type of AR and AP ,
RTV transactions and PO Receipts
STEP 15 CREATION OF VAT AUTHORITY (see Screen 15)
NAV>SUPPLIERS> SUPPLIERS
Create a supplier as

VAT AUTHORITIES

AND select type as

VAT AUTHORITIES.IND

DEFINE THE JOURNAL SOURCE AS VAT

STEP 16 CREATION OF GENERAL LEDGER JOURNAL SOURCE (SEE SCREEN 16)
NAV>SETUP>JOURNAL>SOURCES
DEFINE THE JOURNAL SOURCE AS VAT
For all other VAT GL entries Journal Source would be 'VAT' with description ' VA

T India'. These journal source and categories would be seeded.