Accounting Entries for Vouchers with Recoverable Inclusive VAT Calculated at Net

The following examples illustrate accounting entries for vouchers with recoverable inclusive VAT calculated at net.

Action: Voucher Entered and Posted

In performing the calculation, the system assumes that the discount is taken and the VAT amount is included in the header gross amount.

GL Business Unit	Distribution Account Type	Foreign Amount	Foreign Currency	Monetary Amount	Currency Code	Calculation
DEU01	Expense Distribution	9107.47	EUR	9107.47	EUR
DEU01	VAT Input Recoverable	892.53	EUR	892.53	EUR	8925.32 * .1
DEU01	Accounts Payable	(10000)	EUR	(10000)	EUR

Action: Payment Entered and Posted, Discount Not Taken

The VAT is not adjusted, even though it is calculated at net (minus the discount).

GL Business Unit	Ledger	Distribution Account Type	Foreign Amount	Foreign Currency	Monetary Amount	Currency Code
DEU01	Primary	Accounts Payable	10000	EUR	10000	EUR
DEU01	Primary	Cash Distribution	(10000)	EUR	(10000)	EUR

Action: Payment Entered and Posted, Discount Taken

Because the discount is taken, and the system is set to account at gross, it is necessary to account for the discount at time of payment. The VAT amount is not adjusted by the discount.

GL Business Unit	Distribution Account Type	Foreign Amount	Foreign Currency	Monetary Amount	Currency Code
DEU01	Accounts Payable	10000	EUR	10000	EUR
DEU01	Cash Distribution	(9817.85)	EUR	(9817.85)	EUR
DEU01	Discount Earned	(182.15)	EUR	(182.15)	EUR