The following describes the accounting transactions the system creates when you invoice an invoice plan.
Note: First you invoice the preliminary invoice plan amount. Then you invoice the final values.
Preliminary invoice plan transactions
Prerequisites
The following values are used in the transaction calculations for the purpose of this example:
| Variable | Value |
|---|---|
| Invoice plan amount | 600 |
| Invoiced quantity (item) | 1 |
| VAT (item) | 25 % |
| Postage | 80 |
| VAT output of order lines | 150.00 |
| VAT postage | 20 |
| Total net sales value | 680.00 |
| Total VAT amount | 170.00 |
| Total | 850.00 |
| Invoice total | 850.00 |
Created transactions
The following transactions are created when the preliminary invoice plan is invoiced:
| Transaction type | Description | Amount Debit |
Amount Credit |
Additional info |
|---|---|---|---|---|
| 756 | Sales value, VAT proj. prel | 600.00 | ||
| 960 | VAT output of order lines | 150.00 | ||
| 827 | Postage VAT | 80 | Postage fee | |
| 961 | VAT output of order | 20 | VAT amount of postage fee | |
| A/R | Invoice total | 850.00 | To be accounted on Account Receivable |
Calculations
The following equations outline how the values in this example have been calculated:
| Calculated value | Equation | Calculation |
|---|---|---|
| Sales value gross VAT | Invoice plan amount * Invoiced quantity | 600 * 1 = 600.00 |
| VAT output of order lines | Sales value Gross VAT * VAT percentage of VAT handling code | 600.00 * 0.25 = 150.00 |
| VAT postage | Postage * VAT | 80.00 * 0.25 = 20.00 |
| Total VAT amount | VAT output of order lines + VAT postage | 150.00 + 20.00 = 170.00 |
| Total net sales value | Sales value Gross VAT – Line discount VAT – Order discount VAT | 600.00 + 80.00 = 680.00 |
| Total | Total net sales value + Postage + Total VAT amount | 680.00 + 170 = 850.00 |
Final invoice plan transactions
Prerequisites
The following values are used in the transaction calculations for the purpose of this example:
| Variable | Value |
|---|---|
| Invoice plan amount | 1000 |
| Preliminary invoiced amount | 600 |
| Invoiced quantity (item) | 1 |
| VAT (item) | 25 % |
| VAT output of order lines | 250.00 |
| Total net sales value | 1000.00 |
| Total VAT amount | 250.00 |
| Total | 1250.00 |
| Invoice total | 1250.00 |
Created transactions
The following transactions are created when a project transaction is invoiced:
| Transaction type | Description | Amount Debit |
Amount Credit |
Additional info |
|---|---|---|---|---|
| 756 | Sales value, VAT proj. prel | 600 | Previously invoiced plans | |
| 750 | Sales value VAT proj final | 1600 | Total invoice plan | |
| 960 | VAT output of order lines | 250.00 | ||
| A/R | Invoice total | 1250.00 | To be accounted on Account Receivable |
Calculations
The following equations outline how the values in this example have been calculated:
| Calculated value | Equation | Calculation |
|---|---|---|
| Sales value gross VAT | Invoice plan amount * Invoice plan quantity | 1000.00 * 1 = 1000.00 |
| VAT output of order lines | Sales value Gross VAT * VAT percentage of VAT handling code | 1000.00 * 0.25 = 250.00 |
| Total | Total net sales value + Total VAT amount | 1000.00 + 250.00 = 1250.00 |
Related topics
- Overview of accounting transactions for project order transactions
- (Accounting) Issue material for a project order
- (Accounting) Report services for a project order
- (Accounting) Report activities for a project order
- (Accounting) Receive purchased items for a project order
- (Accounting) Receive manufactured items for a project order
- (Accounting) Close a project phase
- (Accounting) Invoice a project transaction