Accounting Entries for Vouchers with Recoverable Inclusive VAT

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

Action: Voucher Entered and Posted

The calculation assumes the VAT amount is included in the gross amount that you entered on the voucher header. The system automatically makes the calculations.

GL Business Unit	Distribution Account Type	Foreign Amount	Foreign Currency	Monetary Amount	Currency Code	Calculation
DEU01	Expense Distribution	9090.91	EUR	9090.91	EUR	10000 / 1.1
DEU01	VAT Input Recoverable	909.09	EUR	909.09	EUR	9090.91 * .1
DEU01	Accounts Payable	(10000)	EUR	(10000)	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	10000	EUR	10000	EUR
DEU01	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	Calculation
DEU01	Accounts Payable	10000	EUR	10000	EUR
DEU01	Cash Distribution	(9818.18)	EUR	(9818.18)	EUR	10000 - ((100000 / 1.1) * .02)
DEU01	Discount Earned	(181.82)	EUR	(181.82)	EUR	(100000 / 1.1) * .02

Action: Payment Entered and Posted, Discount Taken, Recalculated at Payment

GL Business Unit	Distribution Account Type	Foreign Amount	Foreign Currency	Monetary Amount	Currency Code	Calculation
DEU01	Accounts Payable	10000	EUR	10000	EUR
DEU01	Cash Distribution	(9800)	EUR	(9800)	EUR	10000 - (10000 * .02)
DEU01	Discount Earned	(200)	EUR	(200)	EUR	10000 * .02
DEU01	Discount Earned Adjust Due to VAT	18.18	EUR	18.18	EUR	909.09 * .02
DEU01	VAT Input Rec. Discnt Adjust	(18.18)	EUR	(18.18)	EUR	909.09 * .02