Documentation/ Checking the document header/ VAT included in the total
When VAT is inside the total
Some documents show a single amount with the tax already inside, with no net and no tax amount split out. To record them properly you have to say so, and the system then works backwards and gets the net.
Document › General tab › next to the totals › Extract VAT from total switch
On this page
When it applies
When the document shows the total with the tax inside it and does not break it out. That is normal on:
- Till receipts and simplified invoices.
- Documents from places that quote retail prices.
- Small invoices where the issuer does not set the net out.
- Foreign documents that present things differently.
The symptom in the application is clear: the document ends up with the net empty or equal to the total, and the totals check complains because net plus taxes does not agree.
How to switch it on
Next to the header's totals there is a switch, Extract VAT from total. The switch only shows what is already saved: you do not move it by hand. Pressing it opens a window, VAT included, and the switch moves once the calculation has been done.
- Press the switch.
- Type the tax rate (%): the percentage the calculation will work backwards with.
- Press Apply.
The window tells you two things before it applies: that it will work the net and the tax total out again, and that the breakdown will also apply to that supplier's future invoices. When it finishes you get the message VAT extracted from total.
The rate has to be greater than zero: with the box empty, the Apply button is dead.
While the breakdown is on, the VAT line is worked out again every time the invoice is saved. Any manual changes to that line are lost.
What it works out again
The application warns you that it will work out the net amount and the tax total again. Starting from the total and the rate you gave:
| Before | After |
|---|---|
| Total: the document's amount | Total: unchanged |
| Net: empty or equal to the total | Net: the total less the tax it worked out |
| Tax: empty or zero | Tax: the part of the total that is tax |
The total is never changed. It is the one figure the document is sure about: what you get is how it splits between net and tax. If the total has moved after applying the calculation, something was touched that should not have been.
An example: a receipt for €121.00 at 21 % ends up with a net of €100.00 and tax of €21.00, with the total still at €121.00.
Changing the rate or removing the breakdown
Once the breakdown is applied, the same switch opens the window again, this time carrying the rate that was used. There are three ways out:
| Button | What it does |
|---|---|
| Apply | Runs the calculation again with whatever rate you leave in the box, if you need to correct the percentage. |
| Remove breakdown | Puts the document back as it was and also deletes the supplier's rule: their future invoices come in without a breakdown again. When it finishes you get VAT breakdown removed. |
| Cancel | Closes the window and changes nothing. |
What to check afterwards
- That the status has cleared. If the totals check was complaining, it should stop.
- That the rate is right. It is the only thing you supplied, and the whole split hangs off it.
- That there is not more than one rate. The calculation applies a single rate to the whole document.
What can go wrong
| Message | Why | What to do |
|---|---|---|
| Enter a valid tax rate greater than 0 | No rate was given, or zero was. | Give the rate that applies to the document. |
| Error calculating the included VAT | The calculation could not be completed. | Try again. If it persists, check the total is a valid amount. |
When not to use it
Do not switch it on if the document already breaks out the net and the tax. In that case the tax is not "included" in the sense the calculation means: it is set out, and running the recalculation over a total that already has a correct net behind it produces wrong figures.
It is no good on documents with several tax rates either: the calculation uses one rate. In those cases you fill the breakdown in by hand, rate by rate.