To adjust tax for deductionsIf you create a sales invoice, the tax amount is calculated and posted to the tax ledger account. The tax calculation is based on the invoice amount. If the payment amount differs from the invoice amount due to a discount, the deduction of late payment surcharges, or payment differences, LN can adjust the tax amount. To set up tax amounts adjustment, use the following sessions:
Example Assume or create a sales invoice with the following details (all amounts are in EUR):
In this example, the tax amount is calculated on the gross amount of EUR 5,000, which includes the late payment surcharge and the discount. If the invoice is paid before the due date, at the time of receipt you have the following details:
The business partner only paid EUR 4,700, but, at the time of the invoice, you calculated the tax on the total gross amount (EUR 5,000). This implies that you unnecessarily calculated tax on EUR 300 (the sum of all deductions). With the Adjust Tax for Deductions field, you can determine whether you want to adjust the tax on the deductions. If you choose to deduct tax, LN creates a reversal entry for the tax on the deductions amount of EUR 300, that was posted at the time of the invoice creation.
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