VAT difference in LCY

Mindaugas

Hello everyone,

My problem is VAT differences due to the exchange rate difference between purchase invoice rate and NAV rate.

For ex.:
Received invoice from supplier

Amount excl. VAT 100EUR
Amount excl. VAT (LCY) 800SEK

VAT 25EUR
VAT (LCY) 200SEK

Invoice rate: 8 EUR/SEK

Now, NAV has different rate: 10 EUR/SEK

Amount excl. VAT 100EUR
Amount excl. VAT (LCY) 1000SEK

VAT 25EUR
VAT (LCY) 250SEK


As I understand VAT difference function is allowed only to the original currency (in this case EUR), but then how could I manipulate LCY as well?
In Gen. Journal it is possible to manipulate original amount, LCY amount and currency factor, but in normal purchase invoice form it is not.

Does anyone have similar challenge?

Mindaugas

jglathe

Hi,

usually you avoid this by posting the invoice with the actual exchange rate of the invoice. This defines the VAT amount due for this invoice.
The VAT difference function is for something else - for the difference between the amount printed on the invoice and the amount calculated by NAV. The exchange rate doesn't really figure in this... AFAIK, anyway. Normally the VAT difference is only denominated in transaction currency.

with best regards

Jens

Mindaugas

Jens,

I appreciate your response, thank you.

jglathe wrote:

usually you avoid this by posting the invoice with the actual exchange rate of the invoice.
Jens

Could you elaborate more how do you do this? "actual" is a bit misleading - is it the rate in NAV 330 table, or the rate on the paper from the supplier?

Best wishes,
Mindaugas

jglathe

Hi Mindaugas,

yes that was ambiguous... the exchange rate for the day in T330, unless you have other knowledge (like an F/X trade you can draw on) that fits reality better. Usually you don't have a rate from the supplier.

with best regards

Jens