Tax is calculated in invoicing. The data relevant to tax calculation, such as net amounts and the tax codes, is stored in the billing documents.

The tax is determined by a tax determination code. The procedure for determining the tax determination code is the same as for revenue account determination.

The tax determination code – together with the country and date – defines which VAT code is valid for the billed period or for the invoicing key date.

The VAT code and tax record are determined:

  • At the time of billing and budget billing plan creation. In case of a change in tax, billing prorates the bill lines

or

  • The proration takes place in invoicing. In case of a change in tax, proration does not take place. The tax that is valid at the time of invoicing is important.

Depending on the bill layout, there can be different tax base amounts for determining the VAT in bill printout and contract A/R & A/P postings, because the postings are independent of each other.
This graphic is explained in the accompanying text

In the example, the VAT is printed separately for each billing document. The postings to the general ledger account are however grouped according to energy price and service price. The tax is calculated for each offsetting item, summarized and posted to the tax account (each individual item is round according to currency).

A maximum difference of € 0.01 (or the smallest currency unit) between the print document and the contract A/R & A/P document is permitted for each bill line.

If the maximum permitted amount is exceeded, invoicing is canceled with error message Difference for tax clearing too large. Otherwise, the posted VAT is automatically adjusted to the VAT on the bill.

The required representation of VAT on the bill depends on which presort key was stored in the billing schema.

Caution

The budget billing amounts transferred to invoicing are gross amounts. The VAT is calculated from these gross amounts. Otherwise, the posted VAT is automatically adjusted to the VAT on the bill.

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