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Function documentationImpact of Freight and Discount on VAT: Korea Locate this document in the navigation structure

 

Freight and discount impact on VAT calculation of tax report:

  • Tax Invoice Report:   Reporting   Financials   Accounting   Tax   Tax Invoice Report  

  • Summary VAT Report:   Reporting   Financials   Accounting   Tax   Summary VAT Report  

The calculation and display rules for any freight and discount on VAT are as follows:

Tax Invoice Report

  • Calculation for Discount

    • Base Amount (per line item) = Total (LC) * (1-Discount % (Bottom Area) – Down Payment (distributed))

    • Tax Amount (per line item) = Tax Amount (LC)

  • Calculation for Expense

    • Base Amount (per tax code) = Sum (Add. Expense n (line item)) + Add. Expense Amount (Bottom Area)

    • Tax Amount (per tax code) = Sum (Add. Expense tax n (line item)) + Add. Expense Amount (Bottom Area)

  • Screen Layout

    • Expenses are grouped together by tax code. Expenses with the same tax code are collected in one line, regardless of the expense name.

      • Same expenses with different tax codes: The system calculates and displays the expenses in separate lines, according to the tax code. The same expense name appears in the Description column.

      • Different expenses with the same tax code: The system calculates and displays the expenses in one line with Expense in the Description column.

    • The Quantity, Base Amount and Tax Amount of credit memos are displayed with a negative sign.

      Note Note

      If the tax amount contains decimals, you receive an error message and the tax invoice cannot be generated.

      End of the note.
    • Each line item is displayed in the actual transaction currency. However, Expense and the subtotals are displayed in the local currency.

    • Once a Tax Invoice report has been created, the Business Place value can no longer be changed.

  • Print Layout

    • The total amount of the same items or service descriptions is calculated and displayed in one line, regardless of the tax code. The document posting date for the first row of the item or service in the screen layout is displayed as M (Month) and D (Date) in the print layout.

    • All expenses are calculated and displayed in one line, regardless of the tax code.

    • The display sequence is based on the Base Amount value. The item with the greatest total base amount is displayed as the first line.

    • If the Quantity, Base Amount and Tax Amount of one line amount to zero, the line is not to be displayed.

    • The Expense line is an exemption and is always displayed below the item lines.

    • The number of displayed lines is limited. If there is not enough space to display all items and expenses separately, the remaining items and expenses are added up in the last line with All Items or All Items and Related Expense in the Description column.

    • All amounts are displayed in local currency. Any foreign currency is converted to local currency using the exchange rate of the document posting date.

Summary VAT Report by Vendor (per document)

  • Calculation Rule

    • Base Amount = Total Payment Due + Withholding Tax Amount (A/P Invoice) - tax

    • Tax Amount = Tax (A/P Invoice)

  • Screen Layout

    Base Amount and Tax Amount are displayed in the actual transaction currency.

  • Print Layout

    Base Amount and Tax Amount are displayed in local currency only. Any foreign currency is converted to local currency using the exchange rate of the document posing date.