Preparing For Vat Based Fee

Please find below some preliminary steps that you need to take when going live with the VAT module

1) Tax Setup

We have added a new Tax Configuration screen and setup basic VAT 5%, 0%, Exempt tax rate whichever is applicable for you. You just have to go an link the appropriate Input Tax Account (Under Assets) and Output Tax Account (Under Liability)

Bare minimum, Create 2 Tax Accounts. You can follow structure like the sample below. 

Input Tax Sample:

Output Tax Sample:

Go to Tax -> Create Tax -> Double Click and Open the first entry -> Link the Input and Output Tax accounts.

2) Update Ledger Accounts for Fee Components.

You would now need to link 2 accounts (instead of 1) to each fee head.

Go to Fee -> Fee Component Setup -> Open each fee head and do the following.

You would need Link:

1. Fee Receivable Account

2. Fee Income Account

3) Verify/Validate Defaulters Report

The defaulters report would now show total fee pending for this year. You can sort by columns to see which quarter fee is pending.

Invoices would be created based on the data in the Fee Defaulters report. Therefore the current outstanding is taken from the defaulters report an Invoices would be posted in bulk for all students with 5% tax on it.

So its essential that you verify the values in defaulters report and make any fee adjustments that are necessary to match the actuals before the Invoice posting is done.

4)  Tax Module Access

There a new role available called TAX. This can be assigned to any user form whom tax configuration access is required. You can assign them yourself or let us know the user and we will assign it to them.

5) Tax On Purchase

Tax module is also enabled on you Purchase Module as well. Once ledger accounts are linked you can see them in the Purchase order and Purchase Invoice screens.

Fee Module Details

The fee module has been redeveloped from the ground up to meet the Saudi VAT regulations. However we have done our best to keep the end user experience as much same as possible.

The fee module will currently have 3 major screens.

1) Fee Invoice Posting - BULK Transaction

To Speed up creating invoices for all students, you can use this screen. 

Just select the Academic Year and quarter to post invoice for, select type as FEE or TRANSPORT  and save. Invoices are posted in DRAFT mode in the screen no 1 where you can go and verify if its ok. Once ok you can come back, edit this entry, mark as POSTED = Yes and save, this will post all the documents and also generate Ledger Entries including for tax. 

You can still edit this entry and delete all posted invoices in one GO in case of any mistake to rollback all changes. This can be done as long as no payments are received.

We will do the first posting for you.