How to book a purchase invoice with different VAT

The purchasing process in a company can be initiated from various other processes. Does a sales order contain products that need to be purchased immediately? Has the stock level of an item fallen below the specified minimum? Or is there a need for materials or outsourcing for products in production orders? The purchasing process consists of four steps: creating an order, ordering, receiving goods, and booking the purchase invoice.

An insurance note is an example of a manual purchase invoice. Because insurances are exempt from VAT, you will need to adjust the VAT rate. Follow the steps below to book a purchase invoice with different VAT.

Step 1: Create a new purchase invoice

Open the Purchase Invoices module. Click on the New Purchase Invoice button on the module homepage

Step 2: Check the journal

Each new purchase invoice is set to 'manual' by default. Optionally adjust the Journal to 'purchases (manual)'. Note the document number on the physical purchase invoice.

Step 3: Fill in the purchase invoice header

In the purchase invoice header, you are required to select the Creditor and fill in the External Invoice Number and Invoice Date fields. Although the Total Amount field is not mandatory, we strongly recommend filling it in.

Step 4: Create a purchase invoice line

Click on Purchase Invoice Line . In the Sub-administration field, select the general ledger account where the costs should be booked. Optionally adjust the description in the Description field. Finally, fill in the Total Amount for this line.

Repeat this step for each subsequent invoice line that needs to be added.

Step 5: Adjust the VAT

Select the correct VAT percentage in the VAT field. For an insurance note, this is 0%.

Step 6: Book the purchase invoice

Check in the header if the amounts in the Total Amount and Total Including VAT fields match. Is this the case? Then click on Save