M3 Sales Tax Decision on Supplier Invoices

Supplier invoices not connected to purchase order

It is possible to add tax on an invoice where tax is excluded but required. This is enabled by specifying a geographical code and leaving the check box 'Tax included' cleared when entering a supplier invoice in 'Supplier Invoice. Record' (APS100).

Tax transactions are created on the coding panel in 'Accounting. Open' (GLS120) by using function key F17='Gen VAT/Tax' on invoice lines where a tax code is specified. Two transactions with offsetting amounts are created, AP10-211 (cost as a result of recorded tax) and AP10-217 (self-assessed tax).

The tax calculation is based on the tax code and the tax rates defined for the geographical code. It is possible to display the tax details by using related option 13='Tax details'.

Preliminary supplier invoices not connected to purchase order

When a preliminary supplier invoice is entered in (APS100) it is not possible to add tax on the coding panel in (GLS120). The total invoice amount is instead allocated to the clearing account with accounting rule AP10-215 (Clearing account for supplier invoices). Preliminary supplier invoices are later recoded in 'Supplier Invoice. Recode' (APS110).

When an invoice is selected to be changed or recoded in (APS110), the coding panel in (GLS120) is opened. On the coding panel, the invoice line allocated to the clearing account can be recoded to cost accounts. Enter a tax code on the invoice line and use function key F17='Gen VAT/Tax' to create tax transactions.

Supplier invoices connected to a purchase order

It is possible to add tax on an invoice connected to a purchase order, where tax is excluded but required. This is enabled by leaving the check box 'Tax included' cleared when entering a supplier invoice in 'Supplier Invoice. Record' (APS100).

By using related option 11='Line charges' in 'Supplier Invoice. Match GR Line' (APS360), the line charges proposed from the purchase order are displayed. The tax details for the costing element for tax can be displayed by using related option 5='Display'.

The tax details can be changed by using option 2='Change'. The tax base amount, tax code, or total tax amount can be changed. This table describes the related effects of the these changes:
Change Effect of change
Tax base When the tax base amount is changed, the tax is recalculated, and the total tax amount and detailed tax amounts are changed.
Tax code When the tax code is changed, the total tax amount and detailed tax amounts are recalculated if a new tax rate is found because of the changed VAT code.
Total tax amount When the total tax amount is changed, the tax details are recalculated.

Function keys F8 and F11 are used to approve the line and create account entries.

Related option 12='Account entries' is used to display the account entries. These accounting transactions are created for the line charge with operator 90:
  • A transaction on accounting information type 20 (Received, not invoiced - per line charge). This is recorded on accounting type 226 in the General Ledger.
  • A transaction on accounting information type 90 (Tax received not invoiced. This is recorded on accounting type 217 in the General Ledger.

Supplier invoices connected to a purchase order entered before goods receipt

For scenarios where the invoice is entered before the goods are received, a different set of accounting transactions is created and the invoice needs to be recoded after goods receipt. This is performed in (APS110).

In this scenario, these accounting transactions are created for the line charge with operator 90:
  • A transaction on accounting information type 51 (Invoiced/not goods-received - per line charge, for example, invoice line type 2). This is recorded on accounting type 236 in the General Ledger.
  • A transaction on accounting information type 91 (Tax invoiced not received) This is recorded on accounting type 217 in the General Ledger
After goods receipt, the invoice is recoded according to these steps:
  1. Use F19='Sel receipt' in (APS360) to select the received receipt.
  2. Use F14='Create invoice line' in 'Supplier Invoice. Select to Match' (APS350) to create an invoice line.
  3. Use function keys F8 and F11 to approve the line and create account entries.
These accounting transactions are created for the line charge with operator 90:
  • A transaction on accounting information type 20 (Received, not invoiced - per line charge). This is recorded on accounting type 226 in the General Ledger.
  • A transaction on accounting information type 53 (Invoiced/not goods-received, offset - per line charge (for example, invoice line type 4); offset to accounting information type 51). This reverses the transaction recorded on accounting type 236 in the General Ledger when the invoice was first recorded.
  • A transaction on accounting information type 90 (Tax received not invoiced). No accounting transaction is created in the General Ledger.
  • A transaction on accounting information type 92 (Tax invoice not received - offset). No accounting transaction is created in the General Ledger.