HOW TO RESOLVE SYSTEM DOES NOT REVERSE DEFERRED TRANSACTION



Problem Scenario(s):


Upon payment of a transaction, the user notices that in the Journal Entries of the transaction, there is no closing of Deferred VAT, being a deferred transaction in the Bills.

 

 





Resolution(s):


The main reason that the system does not reverse/closed a deferred entry is that, it does not see that a transaction is a deferred one. Based on the sample transaction above, the Deferred VAT is unticked.




How did the transaction have a deferred entry but the option for deferred is unticked? With this, check the posting account of the VAT Code.


In the transaction, user have used the SR-PSD code. Go to VAT > VAT Codes > Search > Double click on SR-PSD to open the settings. Notice the Posting Account field.





User may accidentally selected the wrong posting account for upon setup of the VAT Codes. To fix this, change the posting account to INPUT VAT only.




Once done, go back to the transaction in Bills and resave it to update the Journal Entries. The image below will be the updated entries. 



To make it a deferred transaction, tick the Deferred VAT



This time, the transaction has been deferred correctly. Go back to Pay Bills to resave the payment and update the entries. Notice now that the system reverse/closed the deferred entry.



Notes:

  1. This issue may also be encountered in Customer side (using Invoices and Receive Payment forms)
  2. Same procedure can be done to correct the entries and for the system to reverse/closed the deferred entry.