Automatically Generating VAT Adjusting Vouchers in FalconPro Real Estate Software

Automatically Generating VAT Adjusting Vouchers in FalconPro Real Estate Software

Introduction

VAT reconciliation is a crucial part of financial management, ensuring that input and output VAT are correctly adjusted and reported. FalconPro Real Estate Software provides an automatic VAT adjusting voucher feature to streamline this process, ensuring compliance with FTA (Federal Tax Authority) regulations.

This guide covers:

  • ✅ How to automatically generate VAT adjusting vouchers.
  • ✅ How FalconPro calculates VAT adjustments.
  • ✅ How to split VAT adjustments across multiple accounts.

Understanding VAT Adjusting Vouchers

A VAT Adjusting Voucher is created when the input and output VAT need to be balanced. FalconPro automatically calculates the difference and generates a voucher to distribute the adjustment across multiple accounts.

Example:

  • VAT Output = AED 41,400
  • VAT Input = AED 934.4
  • Net VAT Payable = AED 40,465.6

FalconPro can split this amount across multiple accounts (e.g., 50% to Account A, 25% to Account B, and 25% to Account C).

Setting Up VAT Accounts in FalconPro

Before generating adjusting vouchers, ensure that VAT accounts are set up correctly.

Steps to Configure VAT Accounts:

  1. Go to “Accounts Report Generator”.
  2. Create a new VAT account (e.g., VAT Output, VAT Input).
  3. Enable “Adjusting” for VAT-related accounts.
  4. Set Debit and Credit Rules:
    • VAT Output: Set as Credit (as collected from customers).
    • VAT Input: Set as Debit (as paid to suppliers).
  5. Choose VAT Output – VAT Input as the calculation method.
  6. Click “Save”.

✅ Now, VAT accounts are ready for automatic voucher adjustments.

Generating VAT Adjusting Vouchers Automatically

Once VAT accounts are configured, FalconPro can automatically generate adjusting vouchers.

Steps to Create an Adjusting Voucher:

  1. Go to “Adjust Voucher”.
  2. Click “Add New”.
  3. Select the VAT Adjusting Report from the List.
  4. Enter the Adjustment Period (e.g., July 1 – September 30).
  5. Click “Generate Adjusting Voucher”.
  6. FalconPro will automatically distribute the VAT adjustment across the defined accounts.

✅ The VAT Output will be debited, and VAT adjustments will be credited to the selected accounts.

Reviewing the Adjusting Voucher

Once the adjusting voucher is created, verify the details to ensure correctness.

Steps to Review an Adjusting Voucher:

  1. Go to “Adjusting Vouchers”.
  2. Click “Preview”.
  3. Check the VAT Output and VAT Input adjustments.
  4. Ensure the net adjustment is correctly distributed (e.g., 50% – Account A, 25% – Account B, 25% – Account C).
  5. Click “Confirm” if everything is correct.

✅ FalconPro will post the adjusting voucher in the accounting system automatically.

Best Practices for VAT Adjustments in FalconPro

  • ✅ Ensure VAT accounts are correctly configured before generating adjusting vouchers.
  • ✅ Regularly generate VAT adjusting vouchers to maintain compliance.
  • ✅ Verify adjusting voucher calculations before confirming.
  • ✅ Use account splitting for accurate financial reporting.
  • ✅ Consult tax auditors if VAT discrepancies arise.

Conclusion

FalconPro Real Estate Software simplifies VAT reconciliation by automating VAT adjusting voucher generation. By following these steps, businesses can:

  • ✅ Accurately balance VAT Output and VAT Input.
  • ✅ Distribute VAT adjustments across multiple accounts.
  • ✅ Ensure compliance with tax regulations effortlessly.

FAQs

  1. What is the purpose of an adjusting voucher?
    It ensures VAT Output and VAT Input are balanced, with the difference distributed among multiple accounts.
  2. Can I manually adjust VAT instead of using an automatic voucher?
    Yes, but FalconPro’s automatic adjusting vouchers eliminate manual errors and ensure compliance.
  3. What happens if VAT adjustments are not done?
    Unadjusted VAT accounts may lead to incorrect tax reporting and compliance issues.
  4. Can I modify an adjusting voucher after generation?
    Yes, but modifications should be done before confirming the voucher.
  5. How often should VAT adjusting vouchers be generated?
    It depends on reporting requirements, but typically monthly or quarterly adjustments are recommended.

Important Links