Print invoice with VAT

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.

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:

• ac2 file example with Clients based on the turnover method, net amounts
• ac2 file example with Clients based on the turnover method, gross amounts
• ac2 file example with Clients based on the Cash received method, gross amounts