In EU countries/regions, every sales and purchase transaction is subject to Tax calculations.
Calculating and Displaying Tax Amounts in Sales and Purchase Documents
You can calculate and display Tax amounts in sales and purchase documents differently depending on the type of customer or vendor that you are dealing with. You can also override the Tax amount calculated by the program to match the Tax amount calculated by your vendor on a given transaction.
Tax correction
It is possible to make corrections to posted Tax entries. This allows you to change the total sales or purchase Tax amounts without changing the Tax base. The feature may be used, for example, if you receive an invoice from a vendor who has calculated Tax incorrectly. For more information on making corrections to posted Tax entries, see How to: Correct Tax.
Unit Price and Line Amount Including/Excluding Tax
When you select an item in the No. field in a sales document, the program also fills in the Unit Price field. The unit price is calculated and transferred from either the Item card or from the item prices allowed for the item and customer. The program only calculates the Line Amount when you enter a quantity for the line.
In cases where you are selling to retail consumers, you may want your sales document prices to be displayed including Tax both on screen and when printed. To do this, you can select the Prices Including Tax check box in the document header.
Checked and unchecked fields
If the Prices Including Tax field is selected, the Unit Price and Line Amount field will be updated to include Tax and the field names will also reflect this.
If the field is not selected, the program will fill in the Unit Price and Line Amount field excluding Tax and the field names will reflect this.
Prices Including Tax Defaults on Customer and Item Cards
You can set up the default setting of the Prices Including Tax for all sales documents for a customer in the Prices Including Tax field on the Customer card.
You can also set up item prices to include or exclude VAT. Normally, item prices contained in the Item Card will be the price excluding VAT. The program uses the information from the Price Includes VAT field on the Item card to determine the unit price amount for sales documents.
The following table provides an overview of how the program calculates the unit price amounts for a sales document when you have not set up prices in the Sales Prices window:
| Price Includes Tax field on Item Card | Prices Including Tax field in Sales Header | Action Performed |
|---|---|---|
No check mark | No check mark | The Unit Price on the Item Card is copied to Unit Price Excl. Tax field on the sales lines. |
No check mark | Check mark | The program calculates the Tax amount per unit and adds to the Unit Price on the Item Card. This total Unit Price is then entered in the Unit Price Incl. Tax field on the sales lines. |
Check mark | No check mark | The program calculates the Tax amount included in the Unit Price on the Item Card using the Tax% related to the Tax Bus. Posting Gr. (Price) and the Tax Prod. Posting Group combination. The Unit Price on the Item Card, reduced by the Tax amount, is then entered in the Unit Price Excl. Tax field in the sales lines. |
Check mark | Check mark | The Unit Price on the Item Card is copied to Unit Price Incl. Tax field on the sales lines. |