Partial tax recovery and non-recoverable VAT are not supported on expense documents in iplicit. This applies specifically to expense documents, not purchase invoices - see 'How to set up partial tax recovery for non-recoverable or partially recoverable VAT in iplicit' for how partial tax recovery works on purchase invoices.

Why the fields don't calculate

The 'Partial Tax Ignore' and related tax recovery fields appear on expense documents but are not functional there. Entering a rate or ticking the field has no effect on how VAT posts. This is a limitation of expense documents specifically.

Alternative approach: posting the adjustment as a manual journal

If an expense includes VAT that is partially or fully non-recoverable, post the adjustment using a manual journal instead:

  1. Raise a manual journal to move the irrecoverable portion of the VAT from the input tax account to the appropriate cost or expense account
  2. Reference the original expense document number on the journal so the adjustment is traceable
  3. Post the journal in the same period as the expense.

Customer search terms

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