Hierarchy for Defaulting VAT Codes on Journal Transactions

Each line of a journal transaction includes a VAT code indicating the VAT category into which the line amount should be accumulated.  This code defaults from the header screen but you may override the default VAT code on any individual line.  The VAT code must have a blank VAT type, indicating normal VAT processing.  VAT codes for General Ledger are defined on Reference File category 114.  To limit the number of VAT codes that can be entered for a particular account, the VAT code and account number combination will be validated against Reference File category 113.  If the account has an account type VAT, then the line is considered a manual VAT line.   In addition to the VAT code, a document type and document number can be entered for each detail line.  The document type must exist on Reference File category 111.  VAT processing in GL is calculated the same way as in Accounts Receivable and Accounts Payable manual invoice entry.