In order to answer to the legal modifications regarding the VAT corresponding to the new mechanism "VAT on collection", a new type of document was added starting with v13.02 which can be operated from the Due Tax Debit/Credit window, located in the Performance Analysis -> Accounting Rules -> Taxes menu. The purpose of this document is to periodically register the chargeability computation for the VAT amounts that were initially marked as "Tax Expense" (which take place due to the VAT on collection principles) and to generate the corresponding accounting records.
You can only enter data in this window by running the Create Due Tax Lines process which is responsible for the calculation method of the VAT (non-)chargeability for the respective period.
The document has the following properties:
it has a "Due Tax" base document type and it is controlled through the document calendar;
its workflow is made up of the following statuses: "Drafted", "In progress" and "Completed";
it is possible to "Re-activate" the document (i.e. bring it from "Completed" to "In Progress", by erasing and re-posting the information);
it cannot be re-activated if any other "Due Tax" documents were entered and processed subsequently;
while in the "Drafted" or "In Progress" statuses, you can erase the document or re-generate its contents;
the content of a document cannot be redone (recalculated) if this was contained in VAT Journal (Tax Declaration);
while in the "Completed" status, you can have the document posted;
from the organizations' perspective, there can be multiple documents for the same period as long as they have been written for separate organizations;
you can add a document at any organizational hierarchy level (organization, node, *).
Note: Once the Due Tax documents have been completed, you can no longer erase or void the associations from the respective period (therefore, neither the invoices and the payments/receipts linked to these)!!
The Create Due Tax Lines process
This process (which can be accessed by pressing the Create Due Tax Lines button in the Due Tax debit/credit window) calculates the VAT liability corresponding to the period indicated on the document. This computation includes not only the purchase but also the sales transactions. It is run at the end of the period for which you wish to determine the due tax, after registering the payments and the receipts (normal, indorsements, compensations, etc.) for the invoices with "VAT on collection" type rates. The process can be run multiple times for the same calendar period, by completely erasing and recalculating, as long as the document is not completed.
Calculation algorithm - payments:
only the payments allocated to bank statements or cash journals dated in the selected period will be taken into account:
this way, the checks will also be treated correctly, as the endorsement date is the chargeability date = allocation date to a fictive endorsement bank statement!
add the Invoice-Invoice allocations, with the date inside the respective interval:
this way, the compensations will also be treated correctly, the compensation date is the chargeability date = the date the invoices are compensated with each other.
out of all of the above, only the amounts allocated on invoices that contain at least one VAT rate with the Tax Delayed checkbox will be taken into account.
if there are multiple tax rates on an invoice (i.e. multiple records in the Invoice Tax tab), then the allocated amounts are distributed to the VAT rates on the invoice lines in the order they have been registered, taking into account the previous allocations (however, for the calculation, we will only consider the sums allocated to Delayed Tax VAT rates);
starting with version 13.09, if an invoice has a first line with Delayed Tax and the second without, the second will be considered an advance only if negative and the if the first is positive;
the amounts are calculated by extracting the VAT from the allocated sum according to the VAT rate, by following the rule:
Due VAT (deductible) = round(allocated_sum * VAT_rate / (100 + VAT_rate),2);
Due Basis(deductible) = allocated_sum - VAT
VAT Expense (left at the end of the period) = VAT_amount - sum (VAT Due by the end of the calculation period)
Expense Basis (left at the end of the period) = Basis_amount - sum(Due Basis by the end of the calculation period)
all the calculations are done in the principal accounting schema currency only
Calculation algorithm - receipts:
can only be applied if the organization(s) selected among the running parameters has (have) the Delayed Tax checkbox;
only the receipts allocated to bank statements or cash journals dated in the selected period will be taken into account:
this way, the checks will also be treated correctly, as the endorsement date is the chargeability date = the date of the allocation to a fictive endorsement bank statement!
add the Invoice-Invoice allocations, with the date inside the respective interval:
this way, the compensations will also be treated correctly, the compensation date is the chargeability date = the date the invoices are compensated with each other.
add the invoices older than 90 days from the invoiced date (age attained in the interval indicated when running the process), if they have been only partially received;
out of all of the above, only the amounts allocated on invoices that contain a VAT rate with the Tax Delayed checkbox will be taken into account and the partially cashed in invoices older than 90 days that contain a VAT rate with the Tax Delayed checkbox;
if there are multiple tax rates on an invoice (i.e. multiple records in the Invoice Tax tab), then the allocated amounts are distributed to the VAT rates on the invoice lines in the order they have been registered, taking into account the previous allocations (however, for the calculation, we will only consider the sums allocated to Delayed Tax VAT rates);
the amounts are calculated by extracting the VAT from the allocated sum according to the VAT rate, by following the rule:
if the invoice is older than 90 days inside the calculation interval, then the entire amount left to be received at the beginning of the period becomes due (VAT and basis)! For the rest, apply:
Due VAT (collected) = round(allocated_sum * VAT_rate / (100 + VAT_rate),2);
Due Basis(collected) = allocated_sum - VAT
VAT Expense (left at the end of the period) = VAT_amount - sum (VAT Due by the end of the calculation period)
Expense Basis (left at the end of the period) = Basis_amount - sum(Due Basis by the end of the calculation period)
all the calculations are done in the principal schema's currency only.
Posting the Due Tax document
The "Due Tax debit/credit" document must be posted in order to register the Due VAT amounts (both deductible and collected) in financial accounting.
The contents of the resulting accounting transactions follow the rules described below:
tenant = the tenant on the Due Tax document;
organization = the organization on the source document;
accounting schema = the default schema, (+ distinct records for each additional active schema);
document type = “TVA exigibil”;
document no = the document's number;
description = the description on the document if there is any, otherwise the standard text;
period = the corresponding fiscal period;
accounting date = the accounting date of the Due Tax document;
posting type = actual - always;
transaction date = the allocation date (of the records in the lines) for each line;
currency = the currency of the schema;
exchange rate = spot at the date of the transaction in the line;
GL category = according to the document type;
business partner = from the source document (invoice);
tax (vat rate) = from the lines, for each line;
the rate with the "Delayed Tax" checkbox for the 4428 account;
similar standard rate for the accounts 4426 and 4427;
UoM and Quantity = null
Account posting rules for the Due Tax amounts corresponding to the reporting period:
a. for the Vendor Invoice source documents from the accounting definition of the VAT rate:
DEBIT - “Tax Credit” (4426) account
CREDIT - “Tax Expense” (4428) account
source amount D/C = Due Tax (deductible), calculated for each line;
accounted amount D/C = Due Tax (deductible), calculated for each line, exchanged at Spot rate type from the transaction date, from RON to the respective schema's currency.
b. for the Customer Invoice source documents from the accounting definition of the VAT rate:
DEBIT - “Tax Expense/” (4428) account
CREDIT - “Tax Due/” (4427) account
source amount D/C = Due Tax (deductible), calculated for each line;
accounted amount D/C = Due Tax (deductible), calculated for each line, exchanged at Spot rate type from the transaction date, from RON to the respective schema's currency.