How to do a Direct VAT Posting in SFM

How to do a Direct VAT Posting in SFM

SFM let's you insert an entry directly in the VAT Control Account.  There are 2 different methods to do so.


The Nominal Method

Nominal Process

- Go on Current Year > Nominal > Vat Table.
- Click on Posting Button (Green button on Sidebar).
- Here you can post a Journal Entry against the Bank/Cash Account.
Only one line is needed, the Contra Entry will be against the VAT Control automatically.


Nominal Result using the Nominal Method

Nominal Entry
Cr Bank/Cash Account
Dr Vat Control Account


The Supplier Method

Supplier Process

- Choose the Supplier who you will pay the VAT directly to (this could be the courier).
- Post an Invoice for that particular supplier.
- Choose the VAT Control Account for the transaction in the 'A/C Code' field.
- Insert the full VAT Amount in the 'Amount' field.



- Upon payment for the Supplier, a standard Purchases Payment needs to be processed.


Nominal Result using the Supplier Method




Both methods achieve the same result when affecting Nominal & Vat Returns, however the Supplier method also achieves an entry in the Supplier which is recommended for historical purposes.

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