1520 rfsa

Info

0001520: (P&L) Exclude VAT amount from Profit

Business information

It is necessary to exclude VAT charges from the gross margin (P/L) of the shipment. Right now the P/L amounts showing on the P/L tab include the VAT charges in the total. This is making the gross margin or the P/L of the shipment incorrect.

Note: VAT charges that we bill to our customers are deducted from the VAT amount we pay to our vendors. The difference of this is either paid or refunded to or by the government. This is why it is so important to be able to be able to break these charges out and show them separately.

Example:

We invoice Coty 100.00 for Customs Entry and VAT applies at 20% the invoice would show
Customs     100.00
Subtotal    100.00
VAT Amount   20.00
Total       120.00

We are invoiced by Denny Price 75.00 for this entry and a VAT amount of 15.00 
Customs  75.00     
VAT      15.00
Total    90.00

At the end of the tax period we would deduct the 15.00 we paid in VAT from the 20.00 we invoiced and owe 5.00.