I am in the UK, and charge VAT at 20% - so on the Sales Invoice I select the “VAT 20%” tax code for each line item. This all works as expected, and I get a tax summary which totals up the VAT tax liability correctly.
When I enter the payment received against this invoice, it is possible to again select a tax code of “VAT 20%” on the payment line items to accounts receivable against this invoice. Is this necessary? I can’t see anything it affects so I’m inclined to leave it out, however I wanted to check there wasn’t something I’m missing!