1. Home
  2. /
  3. User Guides
  4. /
  5. Distribution
  6. /
  7. Accounting
  8. /
  9. Transfer group handling
  10. /
  11. Invoicing
  12. /
  13. (Accounting) Invoice items with...

(Accounting) Invoice items with VAT in system currency

Related topics

The following describes the accounting transactions the system creates when you invoice items with VAT in system currency.

Prerequisites

Invoiced qty item 1 12
Invoiced qty item 2 5
Sales price item 1 50.00
Sales price item 2 60.00
Discount on order lines 5%
Order discount on order header 10%
Cost price both items 25.00
VAT item 1 25%
VAT item 2 12%
Postage fee 80.00
VAT postage fee 25%

Created transactions

Transaction type Description Amount
Debit		 Amount
Credit		 Calculation/Result/Additional info
820 Sales value Gross VAT   600.00
Sales price * Quantity

50.00 * 12 = 600.00

This transaction is for Item 1.
821 Line discount VAT 30.00  
Sales price * Quantity * Discount on order line

50.00 * 12 * 0.05 = 30.00

This transaction is for Item 1.
822 Order discount VAT 57.00  
((Sales price * Quantity) – (Sales price * Quantity * Discount on order line)) * Order discount on order header

((50.00 * 12) – (50.00 * 12 * 0.05)) * 0.10 = 57.00

This transaction is for Item 1.
960 VAT output of order lines   128.25
(Sales value Gross VAT – Line discount VAT – Order discount VAT) * VAT percentage of VAT handling code

(in SEK): (600.00 – 30.00 – 57.00) * 0.25 = 128.25

This transaction is the VAT amount for the sales value of Item 1.
800 Cost of goods sold 300.00  
Cost price * Quantity

25.00 * 12 = 300.00

This transaction is for Item 1.

If the cost type is:

  • Standard cost, the cost price is retrieved from the Standard cost field in the Item file.
  • Average purchase price, the cost price is retrieved from the Average cost field in the Item file.
  • FIFO, the cost price is retrieved from the oldest active FIFO transaction in the FIFO file.
901 Stock value   300.00
Cost price * Quantity

25.00 * 12 = 300.00

This transaction is for Item 1. The cost price is retrieved as described in Cost of goods sold above.
820 Sales value Gross VAT   300.00
Sales price * Quantity

60.00 * 5 = 300.00

This transaction is for Item 2.
821 Line discount VAT 15.00  
Sales price * Quantity * Discount on order line

60.00 * 5 * 0.05 = 15.00

This transaction is for Item 2.
822 Order discount VAT 28.50  
((Sales price * Quantity) – (Sales price * Quantity * Discount on order line)) * Order discount on order header

((60.00 * 5) – (60.00 * 5 * 0.05)) * 0.10 = 28.50

This transaction is for Item 2.
960 VAT output of order lines   30.78
(Sales value Gross VAT – Line discount VAT – Order discount VAT) * VAT percentage of VAT handling code

(in SEK): (300.00 – 15.00 – 28.50) * 0.12 = 30.78

This transaction is the VAT amount for the sales value of Item 2.
800 Cost of goods sold 125.00  
Cost price * Quantity

25.00 * 5 = 125.00

This transaction is for Item 2.
901 Stock value   125.00
Cost price * Quantity

25.00 * 5 = 125.00

This transaction is for Item 2.
827 Postage VAT   80.00 Postage fee
961 VAT output of order   20.00
80.00 * 0.25 = 20.00

VAT amount of postage fee
802 Coin adjustment   0.47
In this example the figures are:

Total net sales value in SEK: 600.00 – 30.00 – 57.00 + 300.00 – 15.00 – 28.50 = 769.50
Postage: 80.00
Total VAT amount: 128.25 + 30.78 + 20.00 = 179.03
Total in SEK: 769.50 + 80.00 + 179.03 = 1028.53
Invoice total in SEK: 1029.00
Coin adjustment in SEK: 1028.53 – 1029.00 = -0.47

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 1029.00    

Related topics