Introduction
Historically, if manually entering an invoice in IndiCater you would add the different net amounts for the different purchasing categories and one VAT and one gross amount.
Since then, many clients have switched to use Itemised VAT, which means the users enter the VAT for each different category. EDI invoices all use Itemised VAT as standard, meaning that we store a VAT amount and rate for each item within an invoice or credit note.
Itemised VAT leads to more accurate reporting and enables the exporting of the accurate VAT amounts for each nominal in the purchase invoice export which is uploaded to your accounting application.
All new clients have been set up this way since we developed the Itemised VAT option back in 2019.
What does this mean for the users?
There are 3 places where this will impact on the user journey.
Manually adding invoices and credit notes
Converting estimates into invoices and credit notes
Combining estimates
In this guide we will go through these 3 user journeys.
Adding invoices and credit notes
When entering an invoice, users are asked to enter the net of the different categories and a single VAT amount:
With the Itemised VAT option, users will need to enter the VAT rate (0% or 20% which can be named as Zero and Standard, this is a decision you can make) for each category they have added:
Converting an estimate into an invoice or credit note
Where to find this
Outlet Finance > Purchasing
Set-by-Step Guide
1.Click on Estimates
2. Click on the Combine/Reverse button
3. Select the supplier you want to enter an invoice for
4. Tick the estimates that you wish to combine into 1 invoice, remember that you cannot combine a mix of credit notes and invoices.
5. Select Combine Estimates in the Action drop down
6. Add your invoice number and any VAT. If you don't see an additional VAT field under the Invoice number, it is likely that you need to enter itemised VAT. Jump to point 7 below
7. You will need to add itemised VAT. Once you have ticked your estimates and selected the Combine Estimates function, you will notice that the amount in the VAT column has changed to red.
8. To enter the VAT, click on the number in red on each estimate. You will get a pop up asking you to select a VAT. If all items in the estimate are subject to the same VAT rate, use the dropdown at the top to select the correct rate:
9. If you need to give different items different VAT rates, use the drop downs next to the item.
7. Click Save. The invoice will now be visible in Invoices and the estimates will no longer be outstanding or available to view under Estimates.