Finance | Project Operations, Human Resources, ...

Two VAT rates on one invoice with purchase order

(0) Share

Report

Posted on by CU27040852-20

Hi,

I often receive invoices with two VAT rates on them.

Example, invoices with £10k zero rated and then £4k standard 20%.

We use purchase orders in our business, so matching them up to one invoice line is proving difficult.

Is there a way to split the VAT amounts on one invoice line, or do you need two ?

If you need two, then the PO has to have two lines also, which is not always the case.

I know there is a VAT adjustment option, but what effect does this have on VAT code reporting, ie would the full invoice amount show as only one VAT code ?

Any help is appreciated.

Thanks,

Ray

I have the same question (0)

All responses (4)

Answers (0)

Sort by

AR-01121610-0 4,973 Moderator on at

Like (1)

Report
Copy link

Link copied!

Hy,

you need to have two lines (on PO and Invoice), each line has it's item tax code either "no tax" or "full tax".

Hope this helps.

Was this reply helpful? Yes No
Suggested answer

Gaurangkumar Jani 4,565 User Group Leader on at

Like (1)

Report
Copy link

Link copied!

Hi there,

Can you provide me some examples why you have 2 rates for the same PO Line?

For system to work you need to have 2 different lines of item to calculate different Tax rates of each line.

Thanks,

Gaurang

Was this reply helpful? Yes No
CU27040852-20 6 on at

Like (0)

Report
Copy link

Link copied!

Hi gaurang,

I have invoices that come in, such as consultancy or aeronautical related invoices that are split between zero rated & standard.

So when raising a PR, we may know the total amount of the works to be completed, but we will not know the VAT split until we receive the actual invoice.

This is why I think it is hard to have the two lines on the PO as no split is confirmed until invoiced.

Thanks,

Ray

Was this reply helpful? Yes No
Suggested answer

BillurSamdancioglu 21,343 Most Valuable Professional on at

Like (0)

Report
Copy link

Link copied!

Hi,

You may not be able to do by OOB functionality.

So you may ask for this functionality from Ideas Portal.

Was this reply helpful? Yes No