Vendor Invoice Settings

One checkbox for one question: how the accountant enters the row amount of a vendor invoice — with VAT or without it.

Where to find it: Modules → Purchase Ledger → Settings → Vendor Invoice Settings

Why it matters

Suppliers invoice in different ways. Goods invoices usually show the amount including VAT — it goes into the «Sum Incl. VAT» column, and the system extracts the tax from inside. Rent, electricity or telecom bills often come differently: the paper shows the amount without VAT, with the tax charged on top. Typed into «Sum Incl. VAT», such an amount gives less tax than the supplier charged — and a smaller debt to them.

The «Enter the row sum without VAT (VAT is added on top)» checkbox adds a «Sum without VAT» column to the vendor invoice rows. The amount typed there is primary: VAT is calculated from it by the row's VAT code and added on top, and «Sum Incl. VAT» is calculated.

Example (16% VAT code): rent of 45,000 without VAT → VAT 7,200, 52,200 including VAT. Without the checkbox, the same 45,000 in «Sum Incl. VAT» would give VAT of 6,206.90 and a debt of 45,000.

What to keep in mind

The checkbox changes how amounts are entered, not the data. A saved invoice is the same in both modes: each row holds the amount including VAT and the VAT, and the amount without VAT is written on every save of the invoice (invoices last saved before the setting appeared do not hold it in their data yet; the print form computes it itself). Postings, document totals, printing and reports do not depend on the checkbox — it can be switched on and off at any time.

Changing the VAT code after the amount keeps the amount without VAT: the VAT is recalculated on top and «Sum Incl. VAT» changes. The row is recalculated from the price (the amount without VAT divided by the quantity and rounded), so with a quantity above 1 «Sum without VAT» may shift by a cent or so when the amount does not divide evenly by the quantity.

A row without a VAT code keeps the VAT typed by hand: amount including VAT = amount without VAT + that VAT.

Each company has its own setting. Switched off (the default), everything works as before: there is no «Sum without VAT» column and the amount is entered with VAT.

Typical situations

The invoice shows less VAT than the supplier's paper. Most often the amount without VAT was typed into «Sum Incl. VAT». Switch the setting on and enter the amount in «Sum without VAT».

The checkbox is ticked but there is no «Sum without VAT» column. Close and reopen the invoice: the window reads the setting when it opens.