Manual project invoices including VAT

When you add a manual project invoice, Profit looks at the various settings. If you have indicated for a debtor that prices are including VAT then Profit will retrieve the prices including VAT. If you have not activated this field, then Profit retrieves the default sales price (excluding VAT).

To add project invoices including VAT manually:

1. Go to: Projects / Invoicing / Invoices.
2. Click on: New.

   Please refer to the description given for Manual project invoices for further information.

3. Enter the invoice line.
4. If the invoice header indicates that the price includes VAT, then the following applies:

   Work type line. Profit determines the fields with prices including VAT as follows:

   • If the work type is not in hours and the Sales price inclusive of VAT field has been completed for the work type, then the sales price is copied.
   • If the work type is not in hours, the Sales price inclusive of VAT field has not been completed and the Sales price field has been completed, then this sales price will be converted to a price including VAT.
   • If the work type is in hours or no work type is used and in the rate the Sales price inclusive of VAT field has been completed, then the sales price is copied.
   • If the work type is in hours or no work type is used, in the rate the Sales price inclusive of VAT field has not been completed and the Sales price field has been completed, then this sales price will be converted to a price including VAT.

   Article line. Profit determines the fields prices including VAT based on the price structure:

   • If a price agreement exists for the article, the price agreement is copied (after all, this is including VAT) if it is indicated for the debtor that Incl. VAT = Y.
   • If a price list has been completed for the debtor which states that the prices in the price list are including VAT, the price is copied from the price list.
   • If a price list has been completed for the debtor but does not state that the prices in the price list are including VAT, then the price in the price list is converted to a price including VAT.
   • If no price agreement exists and no price list has been completed for the debtor, the price from the default price list is converted to a price including VAT.

   Line amounts. Profit calculates the line amounts as follows:

   • If there is a line discount, then it applies to the price including VAT. The discount amount calculated is written to the fields for discount amount including VAT. At the same time the discount amount is calculated on the price excluding VAT and this discount is written to the fields for the discount amount excluding VAT.
   • Line amount including = quantity x price including VAT -/- discount amount including VAT
   • Line amount excluding = quantity x price excluding VAT -/- discount amount excluding VAT

   In all cases where the price including VAT is copied, the price excluding VAT in the line is calculated based on the price including VAT. So, if the invoice is including VAT, the sales price excluding VAT is never copied but is always calculated based on the price including VAT.

5. If the invoice header states that the price excludes VAT, then the price including VAT in the line is always calculated from the price excluding VAT.

   Invoice headers. In the invoice headers Profit calculates the Invoice total as the sum of the line amounts including VAT, if the invoice states that VAT is included in the price: If there is an invoice discount, then Profit calculates the invoice discount on the invoice total. The Invoice total is therefore reduced by the discount calculated.

   Note:

   You can change the Sales price inclusive of VAT field in the invoice header (in the invoice entry layout) manually as long as no lines have been entered. The price including VAT calculation is therefore per invoice.

6. Click on: Finish.

Journalise

When journalising the invoices, Profit determines the journal entry as follows:

• Amount on debtor = Invoice total (base currency)
• Amount on revenue account: per account the sum of the line amounts excluding VAT in the base currency
• Amount on VAT account: VAT amount from the invoice header in the base currency
• Invoice discount amount: from the invoice header

  Note:

  Because the revenue amounts are based on the line amounts excluding VAT, a difference can arise: Invoice total of revenue amounts + VAT amounts -/- invoice discount. When journalising, Profit checks whether a difference arises. If this is the case, Profit incorporates this difference in the highest revenue amount.