Enter a purchase entry with multiple cost types and VAT rates

You may need to split the costs from a purchase invoice over several entry lines, for example because you have purchased different products or because transport or administration costs need to charged.

Profit will automatically suggest the net cost amount for the first cost line. If you enter a smaller amount, the remainder is then entered in new entry line (with another ledger account and/or VAT code). Profit displays the remaining amount on each new entry line and you can continue to change it until all the required lines have been added. After this, Profit automatically generates the VAT line(s) using the VAT codes on the cost lines.

Note:

These procedures apply both for purchase entries and for sales entries in a sales ledger. For sales entries, you itemise the invoice amount over the various turnover accounts.

For transactions with international customers or suppliers, it is also possible to use multiple VAT codes, for example because you have sold goods as well as services. For a single debtor with ICP as VAT duty, you can enter multiple VAT rate types:

• You add two ledger accounts: one turnover account of the Goods type and one turnover account of the Services type. If required, link a preferred VAT code when you add the ledger account.
• If you enter a sales invoice on an account of the Services type, for instance, you can then select a icp VAT code or a high/low/zero VAT code. The VAT declaration is also set up correctly.

Enter a purchase invoice with multiple VAT rates

1. Go to: Financial / Enter / Journal.
2. Check Financial year and Period. These are the financial year and the period in which you post the entry.
3. Select the correct purchase journal.
4. Click on: Finish.
5. Enter the first entry line.

   For more information, please refer to the description in Enter a purchase invoice.

   Profit adds the first cost line with the total cost amount. The contra account of the creditor is displayed if it is registered in the properties of the creditor.

6. Change the cost amount on the second entry line and, if applicable, select another VAT code.
7. Press: Enter.

   Profit adds an entry line for the remaining entry amount.

8. You can change the amount again and choose another VAT code.
9. Press: Enter.

   If the complete net invoice amount has been entered, Profit automatically adds lines for the VAT amounts.

10. Click on: Finish.

Example:

You have ordered provisions for your company. The total invoice amount is €1,150.00, the net invoice amount is €1,000.00. These amounts are calculated as follows:

• Invoice amount at low VAT: 400.00 (VAT 6% x 400.00 = 24.00)
• Invoice amount at high VAT: 600.00 (VAT 21% x 600.00 = 126.00)

  The following lines are in the purchase journal:

  

If you make changes to already entered lines, it can happen that Profit cannot calculate the VAT automatically. This generally happens when the VAT lines have been added by Profit. In this case, use the Recalculate VAT action to recalculate the VAT.

Distribute the invoice amount over different cost accounts

1. Enter the first entry line.

   For more information, please refer to the description in Enter a purchase invoice.

   Profit adds the first cost line with the complete cost amount. The contra account of the creditor is displayed if it is registered in the properties of the creditor.

2. Press: Enter.
3. Enter the cost amount that you want to enter on the contra account of the current entry line.
4. Press: Enter.

   Profit adds an entry line and in this displays the remaining entry amount.

5. Select the ledger account.
6. If the displayed remaining amount needs to be entered on this account, close the entry by pressing Enter.

   Profit generates the necessary VAT lines. If you want to split the line amount further, you change this once again.

7. Click on: Finish.