Value-added Tax (VAT)

1) VAT is a transaction tax that is paid by end consumers

2) Setting up of VAT Posting Group is the same as the General Posting Group
a) VAT Business Posting Group - Customers & Vendors (Who)
b) VAT Product Posting Group - Items & Resources (What)

3) VAT Business Posting Groups
a) FINANCIAL MANAGEMENT -> SETUP -> VAT POSTING GROUP -> BUSINESS
b) Code field can accept 10 characters

4) VAT Product Posting Groups
a) FINANCIAL MANAGEMENT -> SETUP -> VAT POSTING GROUP -> PRODUCT
b) used to calculate tax based on types of item perchased or sell.

5) VAT Posting Setup
a) Matrix of VAT Business Posting Groups and VAT Product Posting Groups