6.4. Tax Recalculation

The Tax Recalculation process, located in the Performance Analysis -> Accounting Rules -> Taxes menu, can be used to recalculate the tax on completed and posted documents after the tax rate used has been edited. A VAT rate on an invoice (customer or vendor) can be edited only if the following conditions are met:

• No VAT Journal has been generated at the moment (tax declarations);

• The VAT Journal has been generated, but not completed -> erase the declaration from the respective month and reintroduce it after the necessary corrections have been applied;

The following parameters are available:

• Tax - the tax rate that has been updated for which the tax amount on the document will be recalculated;

• Invoice - the process can be run for a specific invoice;

• Account date (interval) - selection filter for the invoices for which the process will be run;

• Sales Transaction - selection filter by transaction type:

  • check for customer invoices;

  • clear for vendor invoices;

Press the Start to run the process.

Note:

• After running the process, the involved documents will become not transferred. These will either have to be posted/transferred manually, or be automatically taken over by the accounting process.

• If the price list used on the invoice includes taxes (Price includes TAX checked), after running the process, the total amount on the invoice will remain the same. The tax calculation base amount and the tax amount will be recalculated to add up to the initial total amount;

• If the price list used on the invoice does not include taxes (Price includes TAX not checked), after running the process, the total amount on the invoice will change. As a consequence, for paid invoices, any existing allocations need to be deleted and recreated. Details in Allocations;

• the tax cannot be recalculated for multiple documents at a time if, for the specified period, a VAT Journal has been generated for another organization. In this case, the tax needs to be recalculated for each invoice, one at the time.