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  13. (Accounting) Invoice items with...

(Accounting) Invoice items with VAT included in sales price

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The following describes the accounting transactions the system creates when you invoice items where VAT is included in the sales price and the VAT % is different on the sales order.

Prerequisites

Invoiced qty 10
Sales price 250.00 SEK
VAT percentage included (Incl VAT% cd field) 25%
VAT handling code percentage (VAT handl cd field) 12%
Cost price 50.00 SEK

Created transactions

Transaction type Description Amount
Debit		 Amount
Credit		 Calculation/Result/Additional info
820 Sales value Gross VAT   2000.00
Sales price without VAT * Quantity

Sales price without VAT: 250.00 / 1.25 = 200.00
Sales value Gross VAT: 200.00 * 10 = 2000.00

When the system calculates the Gross sales value, the VAT amount is withdrawn. The VAT handling code defined in the Incl VAT% cd field on the order line is used in this calculation.
960 VAT output of order lines   240.00
Sales value Gross VAT * VAT percentage of VAT handling code

2000.00 * 0.12 = 240.00

This is the VAT amount for the sales value of the item. In this calculation the system uses the VAT handling code defined in the VAT handl cd field on the order line.
800 Cost of goods sold 500.00  
Cost price * Quantity

50.00 * 10 = 500.00

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   500.00
Cost price * Quantity

50.00 * 10 = 500.00

The cost price is retrieved as described in Cost of goods sold above.
A/R To be accounted on Account Receivable 2240.00    

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