Reporting VAT for Goods Received/Not Invoiced

This document explains how to report accrued VAT for goods received/not invoiced (GRNI). GRNI are goods that are reported as received, but not invoiced yet or only partially invoiced.

This process, which is mandatory in France, is part of the company's period end routines and usually performed just before creating a VAT report.

Outcome

VAT accruals are reported and the voucher for VAT accruals is reversed on the selected date.

The data in the proposal header is saved in the FGRNIH table. The lines in the proposal are saved in the FGRNIL table.

For a description of account entries created, see below. All account entries have transaction code 01 (transaction from other areas of M3).

Before you start

  • The periodic inventory system must be selected for the division in 'Settings – Cost Accounting' (CAS900/E).
  • FAM function AP46 must be defined in 'FAM Function. Open' (CRS405). The FAM function determines which voucher name and, if applicable, which book of account to use for the voucher with VAT accruals.
  • Accounting rules must be defined for accounting event AP46 and the accounting types in 'Accounting Rule. Set' (CRS395), which are 111 VAT payable 1, 112 VAT payable 2, 113 Suspense account for VAT payable (these three are used for EU VAT), 211 VAT receivable 1, 212 VAT receivable (used in cascading VAT) 2, 213 Suspense account for VAT on receivable, 222 Supplier debt, 232 Charges with any VAT excluded (expense account), and 959 Purchase (expense account for the purchase without any charges and VAT; VAT account type 4).

Follow these steps

  1. Create proposal

    First, create a proposal for VAT accruals in 'VAT Accruals Round. Create Proposal' (APS460). The proposal is based on purchase order (PO) lines with goods receipt transactions that are either not invoiced at all or only partially invoiced at the date that is specified as ‘to receipt date’ in (APS460).

    To create the proposal, specify the date up to which goods receipt transactions is selected. This date is used as the VAT date. Also, select a base country, where the receiving warehouse is located, and a report layout. The printed report can display values per purchase order line or a total per purchase order.

    All amounts are displayed in local currency in the proposal.

    The transactions included are not blocked from being included in another proposal.

    Values for the VAT calculation are retrieved from these sources:

    • Goods receipt lines: The VAT code is retrieved from the PO line (the MPLINE table).
    • Line charges: The VAT code is retrieved based on the search paths from the charge (the MPCELE table), the PO line (the MPLINE table), and finally the supplier (the CIDVEN table). 
    • Both categories: Base country from the warehouse in 'Warehouse. Open' (MMS005) (the MITWHL table).
    • Both categories: From or To country from address type 5 in 'Supplier. Connect Address' (CRS622) (the CIDADR table); if not found there, from the supplier in 'Supplier. Open' (CRS620) (the CIDMAS table).

  2. Review proposal

    You can review the proposal either online or by studying the report that was printed when creating the proposal.

    The online proposal displays GRNI transactions per PO number, receiving number, item number, or supplier in the sub-program 'VAT Accruals Round. Open Lines' (APS463/B). Each line displays PO and goods receipt details, differences in received and invoiced quantities and amounts, and VAT details. The VAT calculation is based on the cost amount, which indicates the remaining, and not invoiced net amount.

  3. Make adjustments

    You can adjust the online proposal in two ways:

    • Delete any transactions in (APS463/B) that should not be included in the round. The deletion only applies to the current proposal.
    • Jump from the online proposal in (APS463/B) to 'Purchase Order. Reconcile Received/Not Invoiced' (APS370) for a line to report it as invoiced. If so, end by removing the transaction from the proposal before proceeding.

    Any other adjustments such as correcting VAT registration numbers and VAT codes, or entering corrective journal vouchers must be made outside of this program. In such cases, delete the proposal after the adjustments are made and create a new proposal.

  4. Confirm proposal

    Once you have verified the proposal, select 'Update General Ledger' in (APS460/B) and specify the accounting date for the voucher to create and a reversal date. The latter is usually a date in the next period after the VAT has been reported.

    VAT transactions are created for each combination of PO and receiving number, based on the net amount of the goods receipt transactions in local currency, and posted to a separate VAT accruals account. The voucher is created as an external transaction for the closing period. At the same time, another voucher is created with the same account entries and amounts, but with reversed signs and a later accounting date (reversal date). This voucher automatically reverses the VAT accruals voucher.

    If needed, you can print a copy of the confirmed proposal in (APS460/B).

  5. Report VAT

    Create a VAT report that includes the VAT transactions in 'VAT Run. Open' (TXS100). See Reconciling and declaring VAT.

Account entries scenario 1: Basic

Background

  • The received quantity is 100 pieces at a cost of EUR 10 each, resulting in a net order value of EUR 1,000.
  • An invoice has been received for 20 of these. The invoice has been matched to the goods receipt transactions.
  • The net amount in local currency for the non-matched transactions: 80 pieces multiplied with EUR 10 = EUR 800 (the base for the VAT calculation).
  • The VAT rate is 25%. VAT amount: 25% multiplied by 800 = EUR 200.

Account Entries – Voucher 1

Account Rule Description Amount Debit or Credit
AP46-211* VAT 200 Debit
AP46-959 Purchase- Goods received/not invoiced 800 Debit
AP46-222 Supplier- Goods received/not invoiced 1.000 Credit

* Or a VAT account entry based on any of the other accounting types for VAT, depending on scenario.

Account Entries – Voucher 2 with Later Accounting Date

Account Rule Description Amount Debit or Credit
AP46-211* VAT 200 Credit
AP46-959 Purchase- Goods received/not invoiced 800 Credit
AP46-222 Supplier- Goods received/not invoiced 1.000 Debit

Account entries scenario 2: Domestic Delivery with External Charges

Background

  • Domestic supplier delivery of goods for EUR 800.
  • External charges of EUR 200.
  • VAT: EUR 196.

Account Entries – Voucher 1

Account Rule Description Amount Debit or Credit
AP46–211 VAT 196 Debit
AP46–959 Purchase – Goods received/not invoiced 800 Debit
AP46–232 Charges – Goods received/not invoiced 200 Debit
AP46–222 Supplier – Goods received/not invoiced 1.196 Credit

Account Entries – Voucher 2 with Later Accounting Date

Account Rule Description Amount Debit or Credit
AP46–211 VAT 196 Credit
AP46–959 Purchase – Goods received/not invoiced 800 Credit
AP46–232 Charges – Goods received/not invoiced 200 Credit
AP46–222 Supplier – Goods received/not invoiced 1.196 Debit

Account entries scenario 3: Domestic Delivery with External Charges and EU VAT

Background

  • Domestic supplier delivery of goods for EUR 800.
  • External charges of EUR 200.
  • EU VAT: EUR 196.

Account Entries – Voucher 1

Account Rule Description Amount Debit or Credit
AP46–111 VAT 196 Credit
AP46–211 VAT 196 Debit
AP46–959 Purchase – Goods received/not invoiced 800 Debit
AP46–232 Charges – Goods received/not invoiced 200 Debit
AP46–222 Supplier – Goods received/not invoiced 1.000 Credit

Account Entries – Voucher 2 with Later Accounting Date

Account Rule Description Amount Debit or Credit
AP46–111 VAT 196 Debit
AP46–211 VAT 196 Credit
AP46–959 Purchase – Goods received/not invoiced 800 Credit
AP46–232 Charges – Goods received/not invoiced 200 Credit
AP46–222 Supplier – Goods received/not invoiced 1.000 Credit
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