For firms operating in a VAT/GST environment, there are no ready reports in PCLaw through which one can tell the vatable disbursements from the non-vatable disbursements. Disbursements on client ledgers stem from the following source journals:
- General Bank
- Accounts Payable
- Expense Recovery
Most firms experience problems at billing time when they realize that direct disbursements that should have been non-vatable (“n”) have inadvertently been treated as vatable (“y”) at data entry. It may be difficult/impossible to go back to the entry and change the VAT allocation because either the payable has been settled, banks having been reconciled or dates are restricted.
To avoid such problems and as part of the monthly workflows, Accountants can run various reports to ensure that the direct disbursements charged on client matters have been properly classified as Vatable/Non-vatable according to local tax rules.
To aid in doing this the custom field “VAT Category for Allocation” on GB and PJ report layouts is very useful. The reports can then be exported to Excel and sorted out by the column for the VAT category to identify any mistakes.
Locating and correcting the VAT status of Unbilled Disbursement entries this way is easier than having to face problems at billing time several months later in the future. 
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