VAT on MCO Invoice

For a VAT division, that is, if 'TATM' is set to 1='VAT is calculated' in (MNS100), you have the option to retrieve VAT codes on MCO invoices and invoice specifications either from the MCO line or transaction-by-transaction. VAT codes are defined in (CRS030) and hold the VAT rates used for calculating VAT amounts on MCO invoices.

If VAT codes are defined on a transaction level (transaction-by-transaction), this means that all transactions (labor, material, subcontracting, miscellaneous, and loan) on MCO invoice specifications can have different VAT codes. Where the VAT code for each transaction type is retrieved from is described in a separate chapter below.

If VAT code is defined on MCO line level, it means that all transactions on the MCO invoice specification will, per default, get the VAT code defined on the MCO line. The VAT code on the MCO line will be retrieved from the MCO line item in (MMS002). If no VAT code has been defined in (MMS002), then the VAT code in (MMS001) will be used.

The parameter for defining whether VAT code should be retrieved on an MCO-line level or a transaction level is 'VATL' in 'Settings - Maintenance CO Invoicing' (COS822). If VATL is set to 0, VAT codes will be retrieved on a MCO line level. If VATL is set to 1, VAT codes will be retrieved on an MCO invoice specification transaction level. The value that has been selected will be the default value for MCOs at order entry.

Limitations

VAT code on work order transaction level (VATL=1) must be used in combination with miscellaneous cost defined as item in (CRS788) parameter 'MIMA'=1.

It is not possible to change VATL on existing maintenance customer orders. If the value of VATL in (COS822) is changed, the change will only affect MCOs created after the change was performed.

It is not possible to change VAT code manually on transactions on the MCO invoice specification or MCO invoice.

VAT codes defined on a transaction level

If VATL is set to 1 in (COS822), VAT codes will be retrieved on a transaction level which means that MCO invoice specification transactions can have different VAT codes.

When using VAT codes on a transaction level, the VAT codes must be defined per item/warehouse, service/facility, and items per the following setup:

  • Line type 1: Labor
    • The VAT code used for labor transactions is defined on the service/facility record in (MOS301).
    • The VAT code will be displayed on the invoice specification details for labor transactions (COS071) in field 'VTCD'.
  • Line type 2: Material
    • The VAT code used for material transactions is defined per material and warehouse in (MMS002). If no item/warehouse record exists in (MMS002) then the VAT code from (MMS001) is used.
    • The VAT code will be displayed on the invoice specification details for material transactions (COS072) in field 'VTCD'.
  • Line type 3: Subcontracting
    • The VAT code used for subcontracting transactions is defined on the service/facility record in (MOS301).
    • The VAT code will be displayed on the invoice specification details for subcontracting transactions (COS073) in field 'VTCD'.
  • Line type 4: Miscellaneous
    • The VAT code used for miscellaneous cost transactions is defined on the item in (MMS001).
    • The VAT code will be displayed on the invoice specification details for miscellaneous cost transactions (COS074) in field 'VTCD'.
  • Line type 5: Loan
    • The VAT code used for loan transactions is defined per material and warehouse in (MMS002). If no item/warehouse record exists in (MMS002) then the VAT code from (MMS001) is used.
    • The VAT code will be displayed on the invoice specification details for loan transactions (COS075) in field 'VTCD'.

VAT code retrieval for different MCO-line price methods

The VAT code selection will behave differently depending on whether fixed price or non-fixed price is used. If fixed price is defined for one, several, or all transaction types on the MCO line (COS101) then the VAT code on the MCO line will be used for any transactions that fall under the fixed price. For MCO invoice specification transactions that are not included in a fixed price, the VAT code will be retrieved according to VAT code retrieval on transaction level.

Example: If price method 7 (dynamic price) is defined on the MCO-line with fixed price defined for labor and where material/miscellaneous/subcontracting/loan is excluded from the fixed price, then all labor transactions in the MCO invoice specification will get the VAT code from the MCO-line. All transactions in the MCO invoice specification that are not labor will get the VAT code according to VAT code retrieval on transaction level.

Changes that will retrieve the VAT code on the MCO invoice specification

VAT codes cannot be changed manually on the invoice specification (COS170) or on the MCO invoice lines (COS351), but there are some changes that can be made to regenerate the retrieval of the VAT code on the MCO invoice specification.

If the MCO line price method is changed in (COS101), the VAT codes will be updated on the invoice specification in (COS170) to reflect the new price method. Read the chapter above about price retrieval in combination with MCO line price method.

If the VAT code has been changed on the service, material, miscellaneous, loan, or subcontracting data for any of the transactions reported on the MCO invoice specification, or if a customer address is added to (COS105), the VAT information (code and/or VAT rate) will be updated on the invoice specification when selecting:

  • F15 'Regen invoice' in (COS170)
  • RO 51 'Re-create transactions' in (COS101)

Limitation: Changing the delivery terms on the MCO header (COS100) to one with a different tax point is not possible after order entry.

Mass update of VAT codes for (MOS301) service/facility using (MOS772)

The auxiliary program (MOS772) is used for updating the labor and subcontracting VAT codes per service/facility.

  1. Specify the from and to criteria for one or multiple fields to create the selection.

  2. Specify the VAT code for labor and VAT code for subcontracting.

  3. Press Enter to run the job.

    The labor and subcontracting VAT codes for all service/facilities in (MOS301) matching the specified selection will be updated.

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