Good day Akin,

When using Normal VAT / Sales Tax, the Tax column is disabled for customer and supplier accounts, as the system uses the tax type(s) of the original invoice(s) to which you link the payment. You therefore cannot enter a tax code when processing the cash book because tax has already been calculated at invoice level.

The tax column will be enabled for customers and suppliers if using Payment / Cash Based VAT as tax is calculated at payment level.

Please could you kindly verify or reply and let us know if this solution helped in resolving your query.

Regards,

Thank you Ngele. 

The solution has helped. However, I observed that it is not enabled when using payment/cash Based VAT as I currently use now. 

Please can you confirm that portion again?

Regards,

Akin

Good day Akin,

There was a slight error made in my previous reply to your query. My apologies about that.

The tax column will only be activated for General Ledger accounts on the cash book and not for customers and supplier regardless of the tax system you are using. The reason for this is that tax is applied on the invoice; therefore, when the payment is made, it would be inclusive of tax.

If you use cash based tax along with open item processing for customers, the system cannot make tax adjustments until you allocate receipts to their original invoices. The system determines how much tax is due only by looking at the original invoices. If you leave receipts unallocated, you will fall behind in your tax payments and reporting.

If you use cash based tax and the customer is balance forward, the system insists that you force a tax type on the customer's account under the Processing tab.

I hope that this clarifies things for you.

Regards,

Thank you Ngele. Your explanation clarifies things better.

Regards,

Akin