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HansaManuals Home   >> Standard ERP   >> Purchase Ledger   >> Purchase Invoice Register  

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Juhend HansaWorld Enterprise'i versioonile 7.2  

Operations Menu - Purchase Invoice - Create Internal Invoice

This function is used in some countries (for example Poland) to help with EU VAT reporting.

When purchasing Items from other countries in the EU, you do not pay VAT to the Suppliers but you need to pay VAT at the domestic rate that would apply had you purchased the Items from local Suppliers. This is known as Acquisition VAT. You can reclaim this VAT, if the acquisitions relate to VAT taxable supplies that you make.

One method for handling Acquisition VAT is to use a dedicated VAT Code in the relevant Purchase Invoices, as described in the Inside EU VAT Zone example on the VAT Examples page. An alternative method is to create Internal Invoices from the Purchase Invoices. Internal Invoices will be in your home Currency (Base Currency 1) and will post to both the Output and Input VAT Accounts. In the countries that use the VAT Report Sales and the VAT Report Purchases reports (for example, Poland), the benefit of using Internal Invoices is that they will be visible in both reports (i.e. the reports will show both the Input and Output VAT implications). As a result, both reports will match the Nominal Ledger. Purchase Invoices that use a dedicated VAT Code will only be shown in the VAT Report Purchases report. An Internal Invoice will also provide an explicit record of an Acquisition VAT transaction, which was a legal requirement in Poland until 2014. On the other hand, Internal Invoices will not be included in the VAT Listing report, so if you are using this report you should not use Internal Invoices.

Follow these steps:

  1. Enter the Purchase Invoice with no VAT Codes in the matrix. The lack of VAT Codes means the Invoice will not be included in the VAT Report Purchases report.

  2. On flip B of each row, specify the Items you have purchased, with quantities:

  3. Mark the Purchase Invoice as OK and save it in the usual way.

  4. Create an Internal Invoice from the Purchase Invoice by selecting 'Create Internal Invoice' from the Operations menu. This will create a new record in the Internal Invoice register in the Sales Ledger. The new record will be opened in a window entitled 'Internal Invoice: New'. This means that it has not yet been saved.

    The Items and quantities will be copied from the Purchase Invoice, while the Amounts will be converted to your home Currency (Base Currency 1). However, the VAT Codes will be copied from the Item records (Domestic VAT Code field), so VAT will be calculated at the domestic rate. Note that the Domestic VAT Codes will only be taken from the Item records, not from any Item Groups or from the Account Usage S/L setting. So, be careful to ensure any Items that you will purchase from EU Suppliers contain Domestic VAT Codes.

  5. When you are sure the Internal Invoice is correct, tick the OK box and save. If you have so determined in the Sub Systems setting in the Nominal Ledger and in the Number Series - Internal Invoices setting, a Nominal Ledger Transaction will be created that credits the Output VAT Accounts specified in the VAT Codes and debits the Internal VAT A/C specified in the Account Usage S/L setting.

  6. The Internal Invoice will be included in both the both the VAT Report Sales and the VAT Report Purchases reports, if you choose to include Internal Invoices and use the Inside EU option. The Purchase Invoice itself will not be included in the VAT Report Purchases report because of the existence of the connected Internal Invoice.
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