Create a new doctype to automatically close VAT to be paid and VAT collected

1

Calculate Net VAT
Automatically calculate the net VAT by subtracting VAT to be Paid from VAT Collected.
Automate the Closure
Implement a script or workflow to trigger this Doctype at the end of each VAT period (monthly/quarterly).
Transfer the Net VAT to the VAT liability account or settle the amount as required.
Update Accounting Entries:
Once the VAT Closure Transaction is created and saved, update the relevant accounting ledgers:

  • Debit the “VAT Collected” account.
  • Credit the “VAT to be Paid” account.
  • Transfer the net amount to the “VAT Liability” account if there is a payable amount.