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  13. (Accounting) Invoice a BtB...

(Accounting) Invoice a BtB direct sales order

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The following describes the accounting transactions the system creates when you invoice a VAT based item on a BtB direct sales order line.

Cost type = Standard cost

Prerequisites
The following prerequisites apply if the cost type is Standard cost:

Invoiced qty 125
Sales price 90.00 SEK
VAT item 25%

Created transactions

Transaction type Description Amount
Debit		 Amount
Credit		 Calculation/Result/Additional info
820 Sales value Gross VAT   11250.00
Sales price * Quantity

90.00 * 125 = 11250.00
960 VAT output of order lines   2812.50
Sales value Gross VAT * VAT percentage of VAT handling code

11250.00 * 0.25 = 2812.50

This transaction is the VAT amount for the sales value.
800 Cost of goods sold 6250.00  
Cost price * Quantity

50.00 * 125 = 6250.00

The cost price is always retrieved from the Standard cost field in the Item file irrespective of the purchase price on the corresponding BtB direct purchase order.
904 “Stock value” BtB direct delivery   6250.00
Cost price * Quantity

50.00 * 125 = 6250.00

The cost price is always retrieved as described in Cost of goods sold.
802 Coin adjustment   0.50
In this example the figures are:

Net sales value in SEK: 11250.00
VAT amount: 2812.50
Total in SEK: 11250.00 + 2812.50 = 14062.50
Invoice total in SEK: 14063.00
Coin adjustment in SEK: 14062.50 – 14063.00 = -0.50

In the Currency table for the SEK currency, the Adjust inv amount field is 1.00, which means that invoice amounts should always be rounded off to the nearest even Swedish krona.
A/R To be accounted on Account Receivable 14063.00    

Cost type = Average purchase price or FIFO

Prerequisites
The following prerequisites apply if the cost type is Average purchase price or FIFO:

Invoiced qty 125
Sales price 50.00 SEK
Cost price 29.15 SEK
VAT item 25%

Created transactions

Transaction type Description Amount
Debit		 Amount
Credit		 Calculation/Result/Additional info
820 Sales value Gross VAT   6250.00
Sales price * Quantity

50.00 * 125 = 6250.00
960 VAT output of order lines   1562.50
Sales value Gross VAT * VAT percentage of VAT handling code

6250.00 * 0.25 = 1562.50

This transaction is the VAT amount for the sales value.
800 Cost of goods sold 3643.75  
Cost price * Quantity

29.15 * 125 = 3643.75

The cost price is updated on the corresponding sales order line when the goods on the BtB direct purchase order are received to stock.

The cost price is calculated as:

(Purchase price * Quantity) + (Purchase price * Quantity * Handling cost)

(25.35 * 125) + (25.35 * 125 * 0.15) = 29.15
904 “Stock value” BtB direct delivery   3643.75
Cost price * Quantity

29.15 * 125 = 3643.75

The cost price is updated and calculated as described in Cost of goods sold.
802 Coin adjustment   0.50
In this example the figures are:

Net sales value in SEK: 6250.00
VAT amount: 1562.50
Total in SEK: 6250.00 + 1562.50 = 7812.50
Invoice total in SEK: 7813.00
Coin adjustment in SEK: 7812.50 – 7813.00 = -0.50

In the Currency table for the SEK currency, the Adjust inv amount field is 1.00, which means that invoice amounts should always be rounded off to the nearest even Swedish krona.

Note: When running average or FIFO costing, the cost from the purchase order line is used to update the cost on the linked sales order line. In certain circumstances, for example where the purchase unit is not the same as the sales unit, a rounding difference may occur, when this happens a 904 and a 944 transaction type are created at goods reception to account for this.
A/R To be accounted on Account Receivable 7813.00    

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