1. Purpose of VAT settings
VAT settings allow you to define the order in which ISPnext determines the VAT code when processing an invoice. Each VAT source has its own position in the hierarchy. ISPnext checks the sources from top to bottom and uses the first valid VAT code it finds.
The order can be adjusted using drag-and-drop. This gives organisations the flexibility to align VAT determination with their own processes and ERP configuration.
2. Access and permissions
Adjusting the VAT order requires a specific permission. Users without this permission can view the screen, but cannot change the order.
Contact the application administrator to request the required permission.
2.1 Navigation
Go to: AP Automation → Invoice settings → VAT settings
3. Functionality overview
3.1 The VAT settings tab
The screen displays a sorted list of VAT sources. The order from top to bottom determines the priority: the source at the top has the highest priority.
The default order is:
- VAT from supplier settings
- VAT mapping
- VAT from purchase order
- VAT from supplier
- Default VAT from company settings
ISPnext uses the first valid VAT code found in the configured order. If no valid value is available for a source, ISPnext automatically proceeds to the next source in the list.
3.2 The Audit tab
The Audit tab provides an overview of all changes made to the VAT order. For each change, you can see who made the change and when.
4. Adjusting the VAT order
4.1 Navigation
Go to: AP Automation → Invoice settings → VAT settings
4.2 Steps
1. Open the VAT settings tab
The VAT settings tab is active by default when you open the screen.
2. Adjust the order
Click the drag icon (⋮) to the left of a VAT source and drag the row to the desired position. The order from top to bottom determines the priority when determining VAT.
3. Save the change
Click Save to confirm the new order. The changed order is applied immediately to the next invoice processing.
A change to the order has an immediate effect on VAT determination for all invoices that are to be processed. Carefully check the new order before saving.
5. Summary
- VAT settings determine the order in which ISPnext selects the VAT code during invoice processing.
- The order can be adjusted using drag-and-drop and requires a specific permission.
- The default order is: VAT from supplier settings, VAT mapping, VAT from purchase order, VAT from supplier, Default VAT from company settings.
- All changes are recorded in the Audit tab.