Gross or Net Calculation Type

The calculation type that you select determines the basis for calculating the VAT amount. You can select either gross or net as the calculation type. For example, assume that you have a sales amount of 100.00 EUR with early payment terms of 2 percent discount and a VAT rate of 8 percent. In this case, you would enter a VAT transaction amount of 100.00 EUR.

For a calculation type of gross, the system calculates a VAT basis of 100.00 EUR. The VAT amount would be 8.00 EUR and the total amount would be 108.00 EUR.

For a calculation type of net, when the customer has the opportunity to pay early and take a discount, the system calculates a VAT basis of 98.00 EUR. The VAT amount would be 7.84 EUR and the total amount would be 107.84 EUR.