When creating invoices in Novulo, VAT is calculated for each invoice line.
This VAT amount is then rounded to two decimal places (up or down) and added together to calculate the total VAT amount.
Although this is a legitimate method for calculating VAT, we receive many comments from our customers.
They are unable to calculate the VAT based on the net invoice amount. Adding 21% to the net amount results in a lower figure, while subtracting 21% from the gross amount results in a higher figure.
This makes it impossible to verify the final VAT amount based on the total amount (excl./incl.) on the invoice. Standard accounting software automatically calculates incorrect VAT (based on the subtotal), resulting in us receiving the wrong amount in our account.
Is there a way or a module to calculate the VAT based on the total amounts?
In an invoice, not every line has to have the same VAT percentages. So it would not make sense to apply an overall amount of 21% if some lines only require 9% VAT.
I am not completely sure what you are asking. Usually one gives the amount excl + the amount VAT per invoice line and tallies that to an amount, not a percentage. In the totals you could of course split this out again into 21%VAT accumulated and other % accumulated?
Hi Arno,
Am I correct that you mean this issue?
| Invoice line | Amount excl VAT | VAT % | 21% VAT |
|---|---|---|---|
| Invoice line 1 | € 12,36 | 21% | € 2,60 |
| Invoice line 2 | € 0,56 | 21% | € 0,12 |
| Total | € 12,92 | *** |
Now, what is 21% VAT?
- € 2,60 + € 0,12 = € 2,72
- € 12,92 * 0,21 = € 2,71
As you mention, both options are valid - see Btw-bedrag afronden | Belastingdienst
Novulo Invoicing (M3026) indeed uses the first method, and applicable VAT is stored at invoice line level.
On Purchase Invoice level, Novulo accepts invoices in both methods.
This design choice was made back in 2010. There is no existing functionality to switch to ‘method 2’ nor is it part of the roadmap.
Reason behind the choice
This choice was (amongst others) made based on research on our existing customer base back in 2011, where a preference was found for the method we chose. (most users didn’t have a preference by the way).
The method ‘round at invoice lines’, makes it possible in accounting software, to distribute invoices including VAT, to different accounts, as the totals will always match.
What can you do?
If for your customers it’s very important, you could do one of the following steps:
-
Create a small mechanism that adds a “rounding difference VAT” line. I have actually applied this technique recently in a case where we synchronized invoices created in another application. It could be done with a small component that interacts with your ‘finalize’ process in invoices, or with a workflow.
-
If you want to support it structurally, you could technically make copies of all related components, and make modifications. This would include at least M3143, M3608, M3026, M3364 and M8455. Copies will disconnect you from further developments, and it does involve changes in many different parts of the application. It will require a good overview of what you’re changing.
I hope this helps