Print invoice with VAT

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VAT calculation and rounding on the Invoice

In the printing of invoices integrated into accounting, the total VAT amount corresponds to the sum of the individual VAT transactions that make up the same invoice. Since each VAT entry is rounded to the nearest cent, there may be a difference compared to the VAT calculated on the total invoice amount.

To better understand, let's consider the following example:

  • Line 1: 7.7% of CHF 187.50 = CHF 14.4375 -> Rounded: CHF 14.44
  • Line 2: 7.7% of CHF 875.00 = CHF 67.375 -> Rounded: CHF 67.38
  • Total: 7.7% of CHF 1062.50 = CHF 81.8125 -> Rounded: CHF 81.81

On the invoice, a VAT amount of CHF 81.82 is printed instead of CHF 81.81. In fact, the amount of CHF 81.82 corresponds to the sum of the VAT calculated individually for each item (CHF 14.44 + CHF 67.38).

This logic is adopted to avoid discrepancies between the VAT amounts recorded in accounting and those shown on the invoice. In this way, the total VAT in accounting matches that reported on the invoice.

Net VAT and VAT management on a cash basis

In Banana Accounting it is possible to manage customers using both the turnover and the cash received method. However, as far as invoice printing is concerned, there are some limitations if in accounting you record the amounts net and at the same time use the cash received method.

If we want to create invoices, it is not possible to enter amounts net of VAT with the method on the cash received because, when the invoice is issued, the VAT codes must be written between square brackets and the VAT is not calculated but is only an indication for the printing of the document.

Management based on turnover

  • VAT is registered at the moment of issue or receipt
  • Accounts setup: active accounts on the balance sheet for each client (ledger) or a single debtor account
  • The invoice issue transaction shows the VAT code
  • With the VAT Flat tax rate method, the VAT indicated on the invoice is different from that paid by the taxpayer, therefore it must be indicated between square brackets
 Gross AmountNet amount
Effective VAT method✓✓
VAT Flat tax rate method✓✗
   

Management based on cash received

  • VAT is recorded at the time of collection or payment
  • Accounts setup: cost centers CC3 or CC1 or CC2
  • The invoice issuing transaction has the VAT code between square brackets [] and the VAT amount is not recorded in the accounting, for this reason it is not possible to indicate the net amount because the gross amount is not calculated.

More details can be found at the following page : https://www.banana.ch/doc10/en/node/9739

 Gross AmountNet amount
Effective VAT method✓✗
VAT Flat tax rate method✓✗
   

Examples with transactions to create invoices and enter them into the accounting for both the effective VAT method and the VAT Flat tax rate method:

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