A/P and A/R Tax Invoice - General Information 
A/P and A/R tax invoices are documents issued by vendors and sellers, respectively. For taxation purposes, you are legally obligated to issue tax invoices for sold goods or services.
Use tax invoices to summarize one or more A/P or A/R invoices issued or received by your organization. Additional types of tax invoices linking different documents are available.
After you post tax invoices, they are registered in the purchasing and sales ledgers. There is no accounting posting behind a tax invoice. For more information about the ledgers, see Sales and Purchase Ledger Reports - Creation Procedure: RU.
You cannot modify tax invoices after you post, but you can cancel improper tax invoices as a whole. In such a case they will not affect the corresponding ledger. Their base documents can be linked to a new tax invoice.
If you cancel a base document (for example, a credit memo for an invoice) that has been linked to a tax invoice, it is necessary to cancel the corresponding tax invoice and create a new one. You must then regenerate the relevant ledger.
The following types of tax invoices, resulting from different base documents, are available:
Invoice
A collection of one or more A/P or A/R invoices (base documents) which represent an outgoing or incoming goods delivery. Only base documents that have been issued in the same currency can be included on the same tax invoice.
Payment (for A/R tax invoice only)
A link to a down payment (a payment not based on an invoice), which must be registered in the sales ledger due to VAT reporting.
Journal Entry
A link to a journal entry, which posts VAT to an incoming or outgoing VAT G/L account. This journal entry must be formatted in such a way that:
For an A/R tax invoice, an output VAT G/L account is credited and its base amount is specified
For an A/P tax invoice an input VAT G/L account is debited and its base amount is specified
RecommendationWe recommend using a special indicator field value for those journal entries that you want to include on a tax invoice, because SAP Business One lets you filter by this criterion during journal entry selection.
End of the recommendation.
The structure for A/P and A/R tax invoices is very similar. The following describe the common elements. For specific issues, see A/P tax invoice or A/R tax invoice documentation.
Header Area
Specify the customer or vendor code. |
Current number of the document. Specify a numbering series. You can select Manual to specify a non-system tax invoice number (a number assigned outside the system). The system creates the sales document as a copy of the external document rather than as an original document. |
Specify the posting date. The default value for this field is the current date on which the document is created. Changing this date is allowed, but interrupts the continuity of the numbers and dates on a document. |
Date on which the document was issued. |
Date which enables you to determine the time period for the sales or purchase documents to be included in a report. |
Vendor reference number, if available. |
Specify the display currency for the amounts in the document. |
Contents Tab
The type of tax invoice you want to create. The following tax invoice types are available: Invoice Base documents for this type are A/R or A/P invoices. Payment For A/R tax invoices only; the base document is a payment not based on an invoice representing a down payment. Journal Entry The base document is a journal entry with an appropriate structure, including output or input VAT posting. |
Number of the base invoice linked as the base document to the tax invoice. |
Total net sum on the invoice. |
Total tax (VAT) for the invoice for all VAT groups. |
Total sum for the invoice, including VAT. |
Filter criterion for journal entries, applied when you search for a journal entry to be included on the tax invoice.
You create journal entries with TI as the value of the Indicator field on the journal entry.
End of the example. |
ExampleThe actual link to the journal entry. Click Choose to display a list of journal entries for selection. If you have chosen any value for the Indicator field, only those journal entries that have a matching value in this field are displayed . |
Date on which the journal entry was posted to the system. |
Text field for stating the reason for creating this type of tax invoice. |
Displays the linked journal entry. |
Bottom Area
Specify the number of the referenced payment document. If the tax invoice is of type Payment, the value of this field is copied from the selected payment. |
Specify the date of the referenced payment document. If the tax invoice is of type Payment, the value of this field is copied from the selected payment. |
Total net sum for all included base documents (Invoice and Journal Entry types only). |
Total tax (VAT) for all included base documents, for all VAT groups. |
Total sum for all base documents, including VAT. |