Entry of VAT inclusive line items on sales invoices

Support
1

Good afternoon,

I have a client who would like to be able to enter VAT inclusive line items on sales invoices, with the expectation that Quickfile would then calculate the VAT element and show the correct net/VAT/gross values on the invoice. I know there is the “Enter line totals inclusive of VAT” tickbox, however when this box is ticked, and a VAT inclusive value is entered in the unit cost column, Quickfile does not calculate the VAT element correctly. It adds VAT on top of the VAT inclusive value already entered, resulting in incorrect net/VAT/gross values. For example, if a VAT inclusive unit cost of £100 (Qty = 1) is entered, with the appropriate box ticked, then a gross total of £120, with VAT of £20, is created. But this clearly should be net of £83.33 + VAT of £16.67, as is the case with Quickbooks for instance with exactly the same values entered.

Is this a bug in the software, or faulty logic in the programming? Or am I missing something?

Thanks,

Alister

2

Hello @Alister

I have added the example you describe in the recording below and I get the correct figures?

Are you doing something different?

test1

3

Hi Steve,

Thank you for your prompt response.

I was entering the VAT inclusive value in the unit cost column, working on the assumption that the right-hand (greyed out) column was not an editable field (as is the case when entering VAT exclusive values). But I see the gross total can indeed be entered in the right-hand column, which does produce the correct result. Perhaps this could be made clearer in the explanatory text entered by the tick box?

4

The option is to enter the line totals including VAT - you want to set the qty first, then adjust the VAT rate (if it’s not 20%), then enter the total in the right column and it will back calculate the VAT and the unit cost columns from that.

5

Thank you Ian for that clarification - very helpful. :+1: