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Procedure documentationVAT Calculation, EU Locate this document in the navigation structure

 

The following procedure provides a working method by which the VAT is automatically calculated in manual journal entries (including those created through recurring postings, postings templates and journal vouchers).

Prerequisites

The following preliminary definitions should be made in order to have the VAT calculated automatically.

  • You have gone to   Financials   Chart of Accounts   and chosen the Account Details button. In the displayed G/L Account Details Window, you defined the relevant default tax group for each account and whether or not to allow changing the chosen VAT group in transactions.

  • You have gone to   Administration   System Initialization   Document Settings   Per Document   tab. From the drop-down menu, you chose Journal Entry and defined whether or not to use automatic VAT calculation.

Note Note

In order to create a one time journal entry without having the VAT calculated automatically, go to the Form Settings – Journal Entry window and clear the Auto VAT checkbox.

End of the note.

Procedure

  1. Choose a “base” account.

    • The default VAT group defined for this account appears in the Tax Group field in a journal entry, and in the Tax Code field in a service document.

    • In a manual journal entry, a row for the account defined as a tax account for the chosen tax group automatically appears in gray. This tax account row is filled automatically and is not editable.

  2. If changing VAT groups is allowed, the VAT Group and VAT Code fields are activated. You can choose a different VAT group.

  3. Enter a debit or credit amount for the chosen account.

    The tax amount is calculated according to the VAT amount and entered in the Tax Amount field.

    Note Note

    To avoid calculating the credit or debit amount in advance, you can enter the total amount including VAT in the Gross Value field and SAP Business One automatically calculates the debit or credit amount and the VAT amount. Note that the gross value can be entered in local currency only.

    End of the note.
  4. Complete the journal entry, and add it.

The behavior described above for manual journal entries is relevant for journal entries created through posting templates, recurring postings, and journal vouchers, as well.

Note Note

  • SAP Business One can calculate the VAT according to the sign at the amount in the transaction and not only according to the side it appears on. For example, a VAT amount on the debit side with a minus sign is considered as a VAT amount on the credit side.

  • When creating an invoice for a service and no VAT group is defined for the selected account, SAP Business One uses the default VAT group defined in   Administration   Setup   Financials   G/L Account Determination  .

End of the note.