Accounting Entries for Vouchers with Non-Recoverable VAT Calculated at Gross
The following examples illustrate accounting entries for vouchers with non-recoverable VAT calculated at gross.
Action: Voucher Entered and Posted
The system calculates the VAT amount using the VAT basis amount (10000), the VAT rate (10 percent). The VAT calculation type is Exclusive; therefore you must enter a VAT amount on the Voucher Invoice Information page or on the VAT Header page. The VAT amount is NON-recoverable and it is prorated into the Expense Distribution.
| GL Business Unit | Distribution Account Type | Foreign Amount | Foreign Currency | Monetary Amount | Currency Code | Calculation |
|---|---|---|---|---|---|---|
|
DEU01 |
Expense Distribution |
11000 |
EUR |
11000 |
EUR |
10000+(10000*.1) |
|
DEU01 |
Accounts Payable |
(11000) |
EUR |
(11000) |
EUR |
|
Action: Payment Entered and Posted, Discount Not Taken
| GL Business Unit | Distribution Account Type | Foreign Amount | Foreign Currency | Monetary Amount | Currency Code |
|---|---|---|---|---|---|
|
DEU01 |
Accounts Payable |
11000 |
EUR |
11000 |
EUR |
|
DEU01 |
Cash Distribution |
(11000) |
EUR |
(11000) |
EUR |
Action: Payment Entered and Posted, Discount Taken
| GL Business Unit | Distribution Account Type | Foreign Amount | Foreign Currency | Monetary Amount | Currency Code | Calculation |
|---|---|---|---|---|---|---|
|
DEU01 |
Accounts Payable |
11000 |
EUR |
11000 |
EUR |
|
|
DEU01 |
Cash Distribution |
(10800) |
EUR |
(10800) |
EUR |
11000 - ((11000 - 1000) * .02) |
|
DEU01 |
Discount Earned |
(200) |
EUR |
(200) |
EUR |
(11000 - 1000) * .02 |
Action: Payment Entered and Posted, Discount Taken, Recalculate at Payment
When you recalculate at payment, you can create adjusting entries to reduce the amount of the prorated VAT based on payment discounts. This is only true when VAT is set to calculate at gross.
| GL Business Unit | Distribution Account Type | Foreign Amount | Foreign Currency | Monetary Amount | Currency Code | Calculation |
|---|---|---|---|---|---|---|
|
DEU01 |
Accounts Payable |
11000 |
EUR |
11000 |
EUR |
|
|
DEU01 |
Cash Distribution |
(10780) |
EUR |
(10780) |
EUR |
11000 - (11000 * .02) |
|
DEU01 |
Discount Earned |
(220) |
EUR |
(220) |
EUR |
11000 * .02 |
|
DEU01 |
Discount Earned Adjust Due to VAT |
20 |
EUR |
20 |
EUR |
1000 * .02 |
|
DEU01 |
Expense Distribution (Expense Adjustment) |
(20) |
EUR |
(20) |
EUR |
1000 * .02 |