Creating Purchase VAT Invoices

Purchase VAT Invoices can be created in one of the following ways:

• Manually creating purchase VAT invoices
• Automatic creation of Purchase VAT Invoices
• Import of incoming Purchase VAT Invoices
• Generating Purchase VAT Invoices for the period with a periodic job

Creating Purchase VAT Invoices manually

A VAT Invoice can be created manually for:

• Vendor entry,
• Bank/Cash operation,
• Purchase document.

To do it:

1. Select an entry on the Vendor Ledger Entry or Bank/Cash Ledger Entry. Alternatively, open a required posted sales document (for example, Purchase Invoice).
2. Click Create VAT Invoice in Actions > Options.
3. A page with created VAT Invoice will open.

The created sales VAT invoice contains the following information:

General Information

Field name	Field Description
Document Type	Defines the type of document to which the operation belongs (VAT Invoice or Appendix 2).
Number	Defines the number of the corresponding record or operation according to the specified series of numbers.
External Document No	Defines the number of the VAT invoice with which it is registered in the Unified Register of VAT Invoices. For a sales VAT invoice, the external number is formed based on the last digits of the Number field.
Posting Date	Defines the date of recording the operations related to the VAT invoice in the financial accounting system.
Date For VAT Declaration	Defines the date when the VAT invoice will be included in the VAT Declaration.
Issue Date	Defines the date when the VAT invoice was issued.
Registration Date	Defines the date of registration of the VAT invoice in the Unified Register of VAT Invoices.
Issue to Customer	Defines whether the VAT invoice must be issued to the buyer. Activated automatically if VAT Invoice Keeping Reason field is empty.
Included in ERPN	ndicates whether the VAT invoice is included in the Unified Register of VAT Invoices.
Registration Confirmed	Defines whether the registration of the VAT invoice has been confirmed on the VAT Invoice Registration Check page. More detailed information about setting this flag can be found on the page VAT Invoice Registration.
Consolidated VAT Invoice	Defines whether the VAT invoice is a consolidated (summary) invoice for purchase documents. More details about creating consolidated VAT invoices can be found on the pages Creating a VAT Invoice from Specific Documents, Compensating VAT Invoice and Creating a Summary VAT Invoice.
Annual Recalculation	Defines whether the document is an annual recalculation of tax liabilities. More detailed information about setting this flag can be found on the page Annual VAT Recalculation.
Clarifying and Clarified Period	Defines whether the VAT invoice is a clarifying one for a closed tax period and specifies which particular period it refers to.
VAT Free Operations	Defines whether the VAT invoice is issued based on operations that are exempt from taxation.The field is filled in automatically if all lines of the VAT invoice relate to transactions exempt from taxation. The VAT exemption indicator is defined on the VAT Posting Setup page in the VAT Free field.
Registered by Customer	Defines whether the buyer registers this VAT invoice. Filled in automatically for the document type Appendix 2 if the VAT invoice is not issued for tax-exempt transactions and the source type is Credit Note or Refund.
VAT Group for Compensating Liabilities	he VAT business group that will be used for forming the consolidated sales VAT invoice. It also participates in creating the accounting entry regarding the inclusion of part of the VAT amount into the cost of goods/services/fixed assets. More details on forming compensating VAT invoices can be found on the page Compensating VAT Invoice.
Comment	Specifies the comment for this document.

VAT Invoice Lines

In the lines, information about the nomenclature included in this VAT invoice is contained. VAT Invoice Lines are formed based on:

• purchase invoice, which is the source for this VAT invoice;
• purchase invoice or order to which the payment, serving as the source of the VAT invoice, was applied.

In the case of creating a VAT invoice based on a payment that was not applied to any order or invoice, the system will use the default nomenclature/description specified in the Tax Settings (Ukraine) in the lines of the VAT invoice. Your statement says that when a VAT invoice is created based on a payment applied as an advance (prepayment) to an order, and there are changes in the item nomenclature in that order, these changes will be updated both in the order and in the VAT invoice formed from the payment, without needing to create a Correction Calculation (Appendix 2) specifically for the nomenclature change. In the case of accounting for an invoice related to a partial shipment of a sale after accounting for a partial prepayment on the order, which served as the source for the VAT invoice, the system will not create a VAT invoice based on that shipment invoice.

Fields with amounts such as Price Incl. VAT/Price Excl. VAT, Base Amount, VAT Amount, Total Amount are interdependent, meaning their values are automatically calculated when one of these fields is changed. However, it is possible to edit each field independently if the checkbox Manual Correction is enabled on the corresponding line.

The fields Index and Group Index in the VAT invoice lines are filled in at the moment of issuing the VAT invoice or during its posting. The field Article No. Without VAT - the number of the article or clause of the Tax Code of Ukraine, on the basis of which the transaction is exempt from VAT, is filled in.

Manual creation of Purchase VAT Invoice lines

The Get lines from purchase documents function in the created Purchase VAT Invoice allows re-populating the lines when the supplier’s VAT Invoice differs from the one generated based on the purchase document. To do this:

• Open the created Purchase VAT Invoice;
• Click the Get lines from purchase documents button;
• Select the source type: Purchase Document or Posted Purchase Invoice;
• Choose the lines to transfer to the Purchase VAT Invoice. When transferring lines to the Purchase VAT Invoice, the quantity can be adjusted. New lines are added to the existing ones; old ones are not replaced.

Purchase

The section contains information about the counterparty the vendor;

• Account No. — the counterparty's number in the system; for specific VAT invoices, the G/L Account from the VAT setup is used;
• Account name — the name of the counterparty;
• Recipient name — the full name of the counterparty;
• Vend. Ledger Entry No. — the number of the operation in the vendors transaction book;
• VAT Registration No. — it is used either from the vendors card or from the VAT business group settings;
• VAT Payer Certificate No.;
• Recipient Branch Number;
• Submit Complaint and Complaint Description — the ability to indicate on the purchase VAT invoice whether it is necessary to submit a complaint related to this VAT invoice. During the preparation of the VAT Declaration, posted purchase tax invoices with this indicator are included in Application 6, and the text from the Complaint Description is displayed in the comment of the application line.

Source Document

This section contains information about the operation in the system that serves as the basis for forming the VAT invoice.

• Source Type — type of operation in the system;
• Source No. — the operation number in the system;
• Order No.;
• Agreement No.;
• VAT Bus. Posting Group;
• Values of the Global Dimension on the operation;

In case of creating a VAT invoice using the function on the document, or by scheduling the Reform VAT Inv. From Date, the system fills this section automatically. When creating a VAT Invoice manually, these fields are populated based on the selected operation in the Vendor Ledger No. field.

Note In the Notes section, located on the Factbox pane, you can create a note for the VAT invoice if needed.

Automatic creation of Purchase VAT Invoices

If you need to create Purchase VAT Invoices automatically when posting a purchase document in line with the selected VAT Invoice Creation method, it is necessary to enable the Automatic VAT Invoice option for the selected VAT Business Group on the VAT Business Group page.

Import Purchase VAT Invoices

To import purchase VAT invoices and Adjustment Calculations, use the Import Purchase VAT Invoices task, which can be found and launched via search or on the Purchase VAT Invoice List page. The task recognizes files in xml format.

Note An xml- structure file is used for reporting exchange.

Sequence of actions:

1. Select the icon, enter Import Purchase VAT Invoices, and then choose the related link.
2. In the Import window that opens, select a file to be imported.
3. After importing the file, a list of created Purchase VAT Invoices will open.

Note External document No. in the purchase VAT invoice may contain the type of activity that provides for a special taxation regime and the numeric code of the branch or structural unit separated by a slash: VAT Invoice No./Code of the relevant activity/Branch No.

During import, the details of incoming purchase VAT invoices/adjustment calculations are recognized and compared with the vendor's transactions. If a matching transaction is found, the vendor's transaction number is entered, and the source type and source number are filled in accordingly. At the same time, the lines of the purchase VAT Invoice/adjustment calculation are matched with the lines of the source document by analyzing the correspondence of the UKTZED/DKPP code, price, and name. For lines where a match is found, the following fields are filled in: Type, Number, Purchase document No, Purchase document line No.

Note The description (nomenclature) of the vendor's items/services from the purchase VAT Invoice is entered in the Description field of the purchase VAT Invoice/adjustment calculation line. If the number of characters in the description exceeds the maximum allowed for the Description field, the Extended description field will be filled in and the part that does not fit will be entered in the Description 2 field.

To compare purchase VAT Invoice lines after manually entering the vendor's transaction number for transactions with the Payment document type, use the Reform VAT Inv. From Date function.

Note If no vendor transactions are found in the system at the time of import, a Purchase VAT Invoice will be created with the Source Type and Source Number fields left blank. The user must manually match the Vendor transactions to the created Purchase VAT Invoice. If there is a Fixed Asset among the lines in the imported purchase VAT Invoice, then for the correct formation of the VAT Declaration, it is necessary to indicate the connection between the purchase VAT Invoice line and the Fixed Asset:

• Set the "Manual Correction" mark
• Change the "Type" in the line to "FA"
• Select the "Number" of the FA to which the line needs to be linked.

Generating Purchase VAT Invoices for the specific period

To create and regenerate VAT Invoices and Adjustment Calculations on general terms for Vendors for the required period, use the Reform VAT Inv. From Date periodic job. The VAT Invoices and Adjustment Calculations are generated according to the selected VAT Invoice Creation method that is set for the Vendor VAT Business Group. The Reform VAT Inv. From Date job is used to create and regenerate the VAT documents that were not posted previously with the Account, First Event, First Event under the Agreement, First Event under the Order, Payment Methods.

Sequence of steps

1. Select the icon, enter Reform VAT Inv. From Date, and then choose the related link.
2. On the Reform VAT Inv. From Date page, fill in the following required fields:

Field	Description
Beginning Date	Select a date from which VAT documents must be created.
Ending Date	Select a date to which VAT documents must be created.
Reform for Customers	Enable this option if you need to create a VAT Invoice and Adjustment Calculation for Customers.
Reform for Vendors	Enable this option if you need to create a VAT Invoice and Adjustment Calculation for Vendors.
Save VAT invoice after each customer	Enable this option if you need to create a VAT Invoice and Adjustment Calculation for multiple counterparties with consecutive saving of created documents. If the option is disabled, in case of error occurring when the job is running, a VAT Invoice or Adjustment Calculation will not be created. If the option is enabled, in case of an error occurring when the job is running, VAT Invoice and Adjustment Calculation will be created for all counterparties except for the ones in the operations of which the errors have occurred.

3. If necessary, it is possible to use filters on the Sales VAT Invoice Header and Purchase VAT Invoice Header tabs. For example, to generate Sales VAT Invoices for a specific Vendor for the period, specify the Vendor Code in the filter pane of the Purchase VAT Invoice Header tab for the Account No. field.

4. Click OK to run the job. After it’s finished, a pop-up window on creation of VAT Invoices will appear. In case of error, the system will open the Error Message page with the list and summary or errors.

Note

Re-running the job for the same period with the same settings will overwrite the previously created VAT Invoices and Adjustment Calculations that were not posted and didn’t pass the registration validation – for which the External Document No. field is not filled out in the VAT Invoice header.

5. You can check the created VAT documents on the Purchase VAT Invoice List or Check created VAT Invoice Vendor Reconciliation pages.

Note

The option to add notes to a specific VAT invoice is available directly on the Purchase/Sales VAT Invoice page or in the Purchase/Sales VAT Invoice list. To do this, you need to expand the Factbox pane of the page and create the required note in the Notes section.

See Also

VAT Posting Setup
VAT Invoice Vendor Reconciliation