The MTD VAT Module in Eclipse will only run over the GB Currency and will not do any conversions.
If you are paying VAT on non-GB expenses you will need to create a journal so these are picked up by your MTD and VAT module.
1. First you will need to convert the NET and VAT amounts into GB Currency.
2. You will then need to add a £0 Net Journal so the MTD Module will pickup these VAT and NET amounts.
For example, the below journal records £140k worth of Cast Fees and £28K of VAT on those Cast Fees.
Please note that the transaction number for the entire journal needs to be the same or this will not work. The system uses the transaction number to link the transactions.
Tax Code V - Account E01A – Cast Fees £140k
Tax Code Z (out of scope) - Account E01A – Cast Fees -£140k
Tax Code V -140-01 – Vat on Exps £28k
Tax Code Z (out of scope) - 140-01 – Vat on Exps -£28k
It is important that the Net and VAT amounts are flagged with V, and the other two amounts are flagged with a non-VAT code or out of scope code.