Debit:
Bankaccount B  99
Bankcosts  1
Credit:
Bankaccount A  100

However what I would like to see is the following journal entry:
Debit:
Bankaccount B  98,79
VAT Receivable  0,21
Bankcosts 1
Credit
Bankaccount 100

Thanks

We have been using front accounting for a short while now, and we think it's a very useful and simple erp system. Now back to our question:

To transfer money between our bank accounts we use the function "General Ledger" :: "Bank Accounts Transfers". Our bank charges us for transferring money from 1 account to the other. These "bank charges", lets say it's 1% of the amount, are eligible for VAT. I have tried to use the "Bank Charge" field, but the journal is not entirely right. To make it more concrete I will give an example: I want to transfer money from account A to B. Amount that should be transferred is 100  Euro. Bank charges are 1 Euro. These bank charges are eligible for VAT, VAT rate is 21%. That would be 0,21 Euro cents.

When I use the "Bank Accounts Transfer" and the "bank charges" field, the journal entry will look like this:

Debit:
Bankaccount B  99
Credit:
Bankcosts  1
Bankaccount A  100

However what I would like to see is the following journal entry:

Debit:
Bankaccount B  98,79
Credit
VAT Receivable  0,21
Bankcosts 1
Bankaccount 100

So you might wonder why I want to have such a functionality. The reason is that I have a online webshop. All payments are transferred to a bankaccount of my payment provider first. This bankaccount of my payment provider is Bankaccount A in the above example. My payment provider pays out once every week. When my payment provider transfers money to my business bankaccount they will charge some fees, and these fees / charges are eligible for VAT. The amount of fee they charge varies every time.

Hopefully it's clear what my situation is. So please let me know if there's a way to add the VAT in the "Bank Account Transfer" screen.

Regards

Chen