How is the net tax settlement amount calculated?
For each tax type present in the report results, the system generates a separate journal entry containing the following lines:
- Income VAT: The full income VAT amount for that tax type, as shown in the report.
- Outcome VAT: The full outcome VAT amount for that tax type, as shown in the report.
- Settlement Account: The net amount — Income VAT minus Outcome VAT — is posted to the account you selected during settlement.
In other words, the entry doesn’t just post the net amount — it records the full Income VAT and Outcome VAT as two separate lines, then shows the net difference between them in the selected settlement account.