What Are VAT Categories?
VAT categories are specialized categories in Agicap that represent your VAT payments and refunds. They allow you to separate VAT transactions from your regular cash inflows and outflows, providing a clear view of your VAT position.
How VAT Categories Are Created Based on VAT Options
Depending on your VAT settings in Agicap's advances setting, VAT categories are automatically created to match your forecasting needs.
Using VAT Automated Forecast with No Credit Refund
If you enable VAT automated forecast and select No Credit Refund, a default VAT category is created under your Cash Outflow. This category represents your expected VAT payments to the tax authorities.
Using VAT Automated Forecast with Credit Refund
If you enable VAT automated forecast and select Credit Refund, two default VAT categories are created:
VAT Payment under Cash Outflow
VAT Refund under Cash Inflow
These categories represent both VAT payments and potential VAT refunds, allowing for more detailed forecasting of your VAT position.
No VAT Automated Forecast
If you do not enable VAT automated forecast, no default VAT categories are created. You will need to manually manage your VAT transactions in your cashflow.
Associating Transactions with VAT Categories
To ensure accurate VAT tracking, it's important to associate your paid VAT transactions with the appropriate default VAT categories.
Locate the VAT transaction in your transaction list.
Edit the transaction and assign it to the default VAT Payment or VAT Refund category, depending on the nature of the transaction.
Save the changes to update your cashflow forecast.
By associating VAT transactions with the default VAT categories, Agicap can better reflect your actual VAT cash movements in your forecasts.
💡 Tips
Regularly review your VAT categories to ensure all VAT transactions are correctly categorized.
If your business receives VAT refunds, make sure to enable Credit Refund in VAT automated forecast settings to track both payments and refunds.
Utilize VAT categories to separate VAT from operational cashflows, giving you a clearer picture of your net cash position.
FAQ ❓
How do I enable VAT automated forecasting in Agicap?
To enable VAT automated forecasting (only the organization admin can access these settings):
Go to your Advanced Settings.
Navigate to the VAT Options section.
Choose between No Credit Refund or Credit Refund, depending on your business needs.
Save your settings.
This will automatically create the relevant VAT categories in your cashflow.
What if I need to track VAT transactions but don't use automated forecasting?
If you prefer to manage VAT transactions manually:
Create custom VAT categories under Cash Inflow or Cash Outflow as needed.
Assign VAT transactions to these categories to include them in your forecasts.
Remember that without automated forecasting, you will need to update these transactions manually.