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 › the tax block › VAT included box › Apply
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
In the header's tax block there is a VAT included box, telling you to tick it if the tax is inside the total but not broken out.
- Tick the box.
- Give the tax rate that applies: the percentage the calculation will work backwards with.
- Press Apply.
The rate has to be greater than zero. Leave it out or get it wrong and the application says so and applies nothing.
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.
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 applying VAT included | 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.