To deal with VAT on Crime Travel, follow the steps below:
Firstly set up 2 nominals:
as a Balance sheet item called “Crime Expenses” with Type other.
as a Balance Sheet item called “Dummy Bank” with the type Office Bank.
Pay out your travel by visiting Pay Supplier, Find Supplier (Should have FES prefix followed by the fee earners initials) and pay all travel using Dummy Bank. Ensure you take note of the Net and VAT.
Post Bank Receipt to Crime Expenses Nominal using Dummy Bank as the bank breaking down the VAT.
Outcomes:
In the VAT return you will see a negative and a positive posting for the VAT, so now in effect the VAT has not been claimed.
In the Matter ledger this leaves the VAT on the Expense to be included in the CDS6 bill.
When the Fee Earner claims their travel, you debit the Crime Expenses Nominal but use your real office bank, this leaves the VAT on the Crime Expenses Nominal which will sit here until we are able to resolve the VAT on Expenses issue.