Unit Gross Price with Discount

Clearance and Reporting
1

Dear @Ankit.K.Tiwari ,

Please check below:

Unit Price (115) is vat inclusive, we have (10) discount.
Price after discount is (105).
Total before vat is (91.30)
Total vat is (13.70)

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Thank you.

2

Hello @mnuaimi ,

Could you please help me with this?

3

Greetings, @m.mahdi. Indeed, that is entirely accurate.

4

Thank you @mnuaimi for fast reply.

The system uses gross price.
Calculating discount on gross price gives deferent vat result than using net price.

Example:

1) Discount BEFORE VAT

Taxable = 100 − 10 = 90
VAT = 90 × 15% = 13.50
Total = 90 + 13.50 = **103.50 SAR

  1. Discount AFTER VAT**

VAT = 100 × 15% = 15
Total before discount = 115
Final total = 115 − 10 = **105 SAR

VAT results are not same, which one should we use?**

5

@mnuaimi please support.

6

These are the points:

  • Allowance amount (BT-92, BT-136) must equal base amount (BT-93, BT-137) * percentage (BT-94, BT-138) / 100 if base amount and percentage exists

Line Item (discount):

  • Each Invoice line allowance (BG-27) shall have an Invoice line allowance amount (BT-136)
  • Invoice line net amount (BT-131) must equal (Invoiced quantity (BT-129) * (Item net price (BT-146) / item price base quantity (BT-149))-))- Sum of invoice line allowance amount (BT-136)
  • Sum of Invoice line net amount (BT-106) = Σ Invoice line net amount (BT-131)

Document (discount):

  • Each Document level allowance (BG-20) shall have a Document level allowance amount (BT-92)
  • Sum of allowances on document level (BT-107) = Σ Document level allowance amount (BT-92)

Overall:

  • Invoice total amount without VAT (BT109) = Σ Invoice line net amount (BT-131) - Sum of allowances on document level (BT-107) + Sum of charges on document level (BT-108)
  • Invoice total VAT amount (BT-110) = Σ VAT category tax amount (BT-117)
  • Invoice total amount with VAT (BT-112) = Invoice total amount without VAT (BT-109) + Invoice total VAT amount (BT-110)

I think it should clarify for you what and how you should calculate…
Pay attention on BT-131 and BT-107, how they should be calculated and how they should be used.

– Sergei