Product Update 405: Enhancements to cash-based VAT system

Some companies are required to use the cash-based VAT system (see Release 390: Extension of cash-based VAT system in bill of exchange and payment in transit).

VAT overview

If the cash-based VAT code is used, the invoice term in the VAT overview screen (at Finance à VAT à Statistics à VAT overview) will display the account information of the invoice debtor or creditor.

Reversal entry

The Your ref and Fulfillment date in the original invoice will be updated to the VAT reversal entry. The Fulfillment date will also be updated to the Payment date.  

Domestic invoice in foreign currency

The VAT exchange rate has to be defined if an invoice is created for a Hungarian debtor or creditor with foreign currency, and with cash-based VAT code for the Hungarian legislation. Once payment has been made for the invoice, the VAT exchange rate will be reflected at Official VAT basis and Official VAT. For more information, see Product Update 397: Enhanced logic for handling official VAT exchange rates for domestic invoices in foreign currency (Hungarian legislation).