How to book an EU purchase invoice

 

---

 

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? Does the stock level of an item fall below the indicated minimum? Or has there arisen 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.

After receiving the ordered goods from the supplier, you will also receive the invoice from them. To update the financial administration, you will need to book this purchase invoice in MKG. This can only be done provided that the received goods have been booked in. Follow the steps below to book a procedural purchase invoice.

 

The VAT reverse charge mechanism Within the European Union, it has been agreed that the VAT reverse charge mechanism applies. The buyer pays the VAT in their own country. MKG applies this VAT reverse charge mechanism to EU purchase invoices. This is done based on the country code set for the creditor. In MKG, the purchase invoice header contains the field VAT shifted for this purpose. Want to know more? On the website of the Dutch Tax Authority, you can find the article Reverse charge when doing business with foreign countries.

 

 

Step 1: Create a new purchase invoice

 

Open the module Purchase Invoices. Click on the button New Purchase Invoice on the module start page

. Every new purchase invoice is set to 'manual' by default.

 

 

Step 2: Adjust the journal

 

Adjust the Journal to 'purchases (process)'. Note the document number on the physical purchase invoice.

 

 

Step 3: Open the Invoice List

 

Click on the button Invoice List

. This list appears at the top of the screen and contains all procedural purchase invoices that still need to be booked. From this list, you add purchase order lines to the purchase invoice to be created. You can see the purchase invoice to be created at the bottom.

 

 

Step 4: Add the purchase order line(s)

 

First, find in the Invoice List those purchase order lines that are on the physical purchase invoice, for example by searching for Creditor Name. Then select the lines that are on the physical purchase invoice. Finally, click on Add Line

. MKG has added the line(s) to the purchase invoice to be created.

 

 

Step 5: Fill in invoice number, invoice date, and total amount

 

In the purchase invoice header, you are now required to fill in the fields External Invoice Number and Invoice Date. The field Total Amount is not a mandatory field, but we highly recommend filling it in.

MKG now applies the VAT reverse charge mechanism based on the country code set for the creditor. The field VAT shifted is automatically filled.

 

Note! The total amount on the physical invoice may differ from the amount known in MKG based on the purchase order.

 

 

Step 6: Verify the amounts

 

Verify the Total Amount of each purchase invoice line and adjust if necessary. Then check in the header whether the amounts in the fields Total Amount and Total including VAT match. If they do, click on Save

. The purchase invoice is booked and receives the status 'Approved'.

 

Note! Although the VAT may be shifted, the high VAT rate remains in effect. Therefore, do not adjust the VAT to 0%.

 

 

---

Book an EU purchase invoice A video is available for this manual, in which we show you the described steps. Want to see how to book an EU purchase invoice in MKG? Watch this video. duration: 3:54 | sound: no | video opens in new window

---

 

Knowledge Center How to book received goods How to book a procedural purchase invoice How to book a manual purchase invoice How to book an EU sales invoice