Projects:GrossNetAmountTaxes

Contents 1 Functional Specifications 1.1 Section 1: Overview & Justification 1.1.1 Purpose 1.1.2 Scope 1.1.3 Justification 1.1.4 New definitions and acronyms 1.2 Section 2: Users & business process description 1.2.1 User goals 1.2.2 User Roles and Personas 1.2.3 Business process diagram: 1.2.4 Business scenario/s 1.2.4.1 Purchase Invoice Scenarios 1.2.4.2 Sales Invoice Scenarios 1.3 Section 3: Functional requirements 1.3.1 Configuration 1.3.1.1 Sales & Purchase Order/Invoice lines changes 1.3.1.2 Public Sector Organization 1.3.1.3 Tax Not Deductible 1.3.1.4 Tax Deductable 1.3.2 Persona based scenarios 1.3.2.1 Purchase scenarios 1.3.2.1.1 Scenario 1 (HIS Specs - Journal entry 2) = A commercial organization entering a “National” gross amount purchase order/invoice (VAT included and deductible). 1.3.2.1.2 Scenario 2 = A commercial organization entering a “National” Net amount purchase order/invoice (VAT excluded and Deductible) 1.3.2.1.3 Scenario 3 (HIS Specs - Journal entry 6) = A commercial organization entering an “Intracommunity” purchase order/ invoice (VAT deductible) 1.3.2.1.4 Scenario 4 (HIS Specs - Journal entry 4) = A public sector organization entering a “National” Gross amount purchase order/invoice (VAT included but not Deductible because of Public Sector Organization) 1.3.2.1.5 Scenario 5 = A public sector organization entering a “National” Net amount purchase order/invoice (VAT excluded and not deductible because of Public Sector Organization) 1.3.2.1.6 Scenario 6 (HIS Specs – Journal entry 3) = A public sector organization entering an “Intra-community” purchase order/invoice (VAT not deductible because of Public Sector Organization 1.3.2.1.7 Scenario 7 = A commercial organization entering a “National” gross amount purchase order/invoice (VAT included and non-deductible). 1.3.2.1.8 Scenario 8 = A commercial organization entering a “National” Net amount purchase order/invoice (VAT excluded and Non-Deductible) 1.3.2.1.9 Scenario 9 = A Commercial organization entering an “Intra-community” purchase order/invoice (VAT not deductible) 1.3.2.1.10 Scenario 10 Purchase Credit Invoices. 1.3.2.2 Sales scenarios 1.3.2.2.1 Scenario 1 (HIS Specs - Journal entry 5) = A commercial organization issuing a “National” gross amount sales order/invoice (VAT included) 1.3.2.2.2 Scenario 2 = A commercial organization issuing a “National” Net amount sales order/invoice (VAT excluded) 1.3.2.2.3 Scenario 3= A commercial organization issuing an “Intracommunity” Net amount sales invoice 1.3.2.2.4 Scenario 4 = A public sector organization issuing a “National” Gross or Net amount sales invoice (No VAT Sales applies to this scenario) 1.3.2.2.5 Scenario 5 = A public sector organization issuing an “Intracommunity” Gross or Net amount sales invoice (No VAT Sales applies to this scenario) 1.3.2.2.6 Scenario 6 Sales Credit Invoices 1.3.2.3 Tax Deductible & Not Tax Deductible scenarios 1.4 Design & Technical considerations 1.4.1 Design considerations 1.4.2 Technical constraints 1.4.3 Technical requirements 1.5 User Interface 1.5.1 New user interface 1.5.2 User interface changes 1.6 License 1.7 Discussion items 1.8 Appendix

Functional Specifications

Section 1: Overview & Justification

Purpose

The purpose of this document is to describe the functional specifications for a new extension module and a few core enhancement which are:

1. Extension Module = “GrossAmountsInvoiceLines” and below Core Enhancements:
   1. Issues 12060 and 12061 are the required core enhancements for this module to work. "Summed Line Amount" filed is now renamed as "Total Net Amount" and "Grand Total Amount" is now renamed as "Total Gross Amount" at Purchase-Sales Orders&Invoices Header level. One new check box has been created to allow the end-user to edit "Line Net Amount" at Purchase-Sales Orders&Invoices Lines level. "Line Net Amount" can be now editable and has also be moved from "Status" section to "Amounts" section. Besides "Unit Price", "Standard Price" and "List Price" are now renamed as "Net Unit Price", "Net Standard Price" and "Net List Price", respectively
2. Core enhancement = "TaxPostingAsExpense".

Module and core enhancement information can be found below:

Module 1:

• Module Name = “GrossAmountsInvoiceLines”
• Module Description = “Gross amounts (Amounts including Taxes) can be entered at order/invoice line Level”
• Module language = English
• Module url = url forge for the project
• Module Help= “This module will allow the end user to enter in the system Gross Amounts (Amounts including Taxes, by example VAT), at sales/purchase order line level as well as sales/purchase invoice line level. The system will re-calculate Net amounts as well as Net unit prices based on the Gross amount and tax rate entered by the end-user"
• Module author = Openbravo SLU
• Module License= OB Commercial License

Core enhancement - “TaxPostingAsExpense”. This enhancement will allow the end user to post taxes as an expense for those cases of non-deductible taxes and/or Organizations which are not allowed to deduct taxes because of Organization type (Public Sector) or Organization activity.

• Module License= OB Public License

These features are required by HIS but there are also applicable to any company dealing with VAT or any other kind of taxes.

Gross amount is the sum of the Net amount and the tax (VAT) amount and Net amount is the gross amount reduced by the tax (VAT) amount, as described in the scenarios listed below:

Module 1 - Scenario 1: Invoice amount = 119 (Including VAT)

User input = Gross amount = 119

VAT rate = 19%

Net amount = 100 To be calculated by the system as= gross x100/(100+VAT rate)

and the VAT amount as = 19 = gross amount *(VAT rate)/(100+VAT rate)

Module 1 - Scenario 2: Invoice amount = 100 (excluding VAT) – OB current behavior

User input = Net amount = 100

VAT rate = 19%

Gross amount = 119 (to be calculated by the system = OB current behavior)

Core Enhancement - Scenario 1: VAT posted as an expense

It is also required to get accurate VAT posting based on the fact that there are Organizations for which VAT is not deductible but an expense, and therefore it should be posted as such (expense); beside there could be Organizations which are allowed to deduct VAT under some scenarios and not allowed to deduct VAT under some other scenarios; in those last scenarios there could be VAT rates marked as non-deductable which should be posted as an expense.

This new feature is going to be developed and delivered as a 1 new extension module and a core enhancement which will be implemented according to the Technical Documentation which can be found here : Amount and VAT Technical Document

Scope

In Scope:

OB will allow the end user to enter in the system Invoices including taxes (by example VAT) by filling-in a new field named "Gross Line Amount".

Besides OB will allow the end user to get proper tax posting according to the the type of organization we are talking about either Public Sector Organizations (non-deductible tax posted as an expense) or Commercial units (deductible tax posted as tax)

Besides and in the case of Non-Public Organization properly setup as VAT rates set as "Tax Not Deductible", VAT deductible will not be posted as VAT deductible but as an expense.

Justification

This feature is required in Germany as well as in Public Sector but it is also generally useful for other countries and at any case to any company dealing with VAT or any other kind of taxes.

New definitions and acronyms

VAT=> Value Added Tax

Section 2: Users & business process description

User goals

This feature will allow:

• Public sector organizations to enter and properly post Gross Amount (Amounts including Taxes) orders/invoices in the system.
  Public Sector organizations cannot deduct the VAT deductible which means VAT amount must be posted/booked as an expense.
  • As a general rule in relation to Purchase Invoices:
    
    • If an organization is a public sector organization, the amount of "VAT deductible" must be booked as an expense.
    • If an organization is public sector organization, the amount of "VAT liabilities" must be booked as a "VAT liabilities"
  • As a general rule in relation to Sales Invoices:
    
    • No Sales VAT applicable to Sales Invoices issued by Public Sector Organizations.
• Commercial units to enter and properly post Gross Amount (Amounts including Taxes) orders/invoices in the system.
  Commercial units can deduct the VAT paid therefore VAT is not posted as an expense but as a tax which is current system behavior.Besides, and in case of non-deductible VAT Commercial Units could post Purchase VAT as an expense based on tax rates setup.

There is no need to change system behavior but just to get end-user can enter in the system gross amounts and to get taxes can be posted as expenses in case of public sector organizations and in case of Not Tax-Deductible scenario

User Roles and Personas

The following role is involved:

Accounting staff (Mike) Book keeping person

Business process diagram:

N/A

Business scenario/s

Purchase Invoice Scenarios

There are 2 type of Purchase Invoice Scenarios we are going to take into account.

A brief explanation as well as tax configuration/setup required is explained below:

National - this scenario applies to an Organization and a Business Partner (vendor) both located in Germany.
In this scenario Organization address/location as well as Business Partner address/location must be Germany, therefore the purchase tax rates which must be used/selected by the system should be the ones setup as "National Purchase Tax Rate".
"National Purchase Tax Rate" must be setup in the system as described below:

1. Go to Financial Management / Accounting / Setup / Tax category and create a new tax category as described below:
   1. Organization = HIS org
   2. Name = VAT19%
   3. Description = VAT19%
   4. Active = yes.
2. Go to Master Data Management / Product and create a new product to be used on purchase/sales transactions
   1. It is really important to assign just created Tax category ("VAT19%) to the product.
3. Go to Financial Management / Accounting / Setup / Tax rate and create a new tax rate as described below:
   1. Name/Description = National Purchase VAT 19%
   2. Active = yes
   3. Valid from date = 01/01/01
   4. Tax category = VAT19%
   5. Sales/Purchase Type = Purchase Type
   6. Rate = 19,00
   7. Country = Germany and Destination country = Germany
   8. Go to Accounting tab and enter as Tax Credit account = 260000 and Tax Due account = 480100
   9. Depending on Organization type posting will be different:
      1. For a Public Organization "National Purchase VAT 19%" will be posted as an expense (due to Organization parameter checked)
      2. For a Non Public Organization "National Purchase VAT 19%" will be posted as VAT deductible.
   10. Next step would be to create a BP (vendor) located in Germany and make sure that Organization location is Germany and a Purchase order for that specific BP and Product assigned to Tax category = VAT 19%.

National (Non-Deductible) - This scenario do not apply to HIS as it explains Not tax deductible scenario at tax rate level. This scenario applies to an Organization and a Business Partner (vendor) both located in Germany
In this scenario Organization address/location as well as Business Partner address/location must be Germany, therefore the purchase tax rates which must be used/selected by the system should be the ones setup as "Non-Deductible National Purchase Tax Rate".
"Non-Deductible National Purchase Tax Rate" must be setup in the system as described below:

1. Go to Financial Management / Accounting / Setup / Tax category and create a new tax category as described below:
   1. Organization = Commercial org 1
   2. Name = VAT19%
   3. Description = VAT19%
   4. Active = yes.
2. Go to Master Data Management / Product and create a new product to be used on purchase/sales transactions
   1. It is really important to assign just created Tax category ("VAT19%) to the product.
   2. It is really important to assign a non-deductible Tax category to the BP by navigating to Financial Management || Accounting || Setup || Business Partner Tax Category || Business Partner Tax Category and the BP tax category created there must be setup to the BP at the application path: Master Data Management || Business Partner || Business Partner >> Vendor/Creditor (Tax category field) as well as to the tax rate Financial Management || Accounting || Setup || Tax Rate || Tax (Business Partner Tax category field).
3. Go to Financial Management / Accounting / Setup / Tax rate and create a new tax rate as described below:
   1. Name/Description = Non-Deductible National Purchase VAT 19%
   2. Active = yes
   3. Valid from date = 01/01/01
   4. Tax category = VAT19%
   5. Sales/Purchase Type = Purchase Type
   6. Rate = 19,00
   7. Country = Germany and Destination country = Germany
   8. Business Partner Tax category = Non-deductible
   9. Not tax-deductible = YES
   10. Go to Accounting tab and enter as Tax Credit account = 260000 and Tax Due account = 480100 by example, because posting process should take product expense account.
   11. Posting will be:
       1. For a Public Organization "Non-Deductible National Purchase VAT 19%", do not apply but anyway VAT deductible will be posted as an expense (due to Organization parameter checked)
       2. For a Non Public Organization "Non-Deductible National Purchase VAT 19%" will be posted as an expense too (Not Tax Deductible parameter).
4. Next step would be to create a BP (vendor) located in Germany and make sure that Organization location is Germany and a Purchase order for that specific BP and Product assigned to Tax category = VAT 19%.

Intracommunity - This scenario applies to an Organization located in Germany and a Business Partner (vendor) do NOT located in Germany but France by example.
In this scenario Organization address/location must be Germany but Business partner address/location must be any of the European Union countries (France by example), therefore the purchase tax rates which must be used/selected by the system should be the ones setup as "Intra-Community Purchase Tax Rate".
"Intra-Community Purchase Tax rate" must be setup in the system as described below:

1. Go to Financial Management / Accounting / Setup / Tax rate and create a new Tax Rate as summary one as detailed below:
   1. Name/Description = Intracommunity purchase VAT 19%
   2. Active = yes
   3. Valid from date = 01/01/01
   4. Tax Category = VAT19%
   5. Sales/Purchase Type = Purchase Tax
   6. Summary Level = yes
   7. Rate = 0,00
   8. Country = France, Destination Country = Germany
   9. Go to Accounting tab and enter as Tax Credit account = 260000 and Tax Debit account = 480100
2. Go to Financial Management / Accounting / Setup / Tax rate and create a new tax rate as described below:
   1. Name / Description = Intracommunity purchase VAT 19% (19%)
   2. Active = yes
   3. Valid from date = 01/01/01
   4. Tax category = VAT19%
   5. Sales/Purchase type = Purchase tax
   6. Parent Tax rate = Intracommunity purchase VAT 19%
   7. Rate = 19,00
   8. Country = France, Destination Country = Germany
   9. Go to Accounting tab an enter as Tax Credit account = 260000 and Tax Debit account = 480100.
   10. Depending on Organization type posting will be different:
       1. For a Public Organization Intra Community Purchase VAT 19% (19%) will be posted as an expense (Organization parameter)
       2. For a Non Public Organization Intra Community Purchase VAT 19% (19%) will be posted as VAT deductible.
3. Go to Financial Management / Accounting / Setup / Tax rate and create a new tax rate as described below:
   1. Name / Description = Intracommunity purchase VAT 19% (-19%)
   2. Active = yes
   3. Valid from date = 01/01/01
   4. Tax category = VAT19%
   5. Sales/Purchase type = Purchase tax
   6. Parent Tax rate = Intracommunity purchase VAT 19%
   7. Rate = -19,00
   8. Tax Deductible = Yes
   9. Country = France, Destination Country = Germany
   10. Go to Accounting tab an enter as Tax Credit account =480100 and as Tax Debit account = 260000
   11. Depending on Organization type posting will be different:
       1. For a Public Organization Intra Community Purchase VAT 19% (-19%) will be posted as VAT liability due to Tax Deductible new parameter
       2. For a Non Public Organization Intra Community Purchase VAT 19% (19%) will be posted as VAT liability, normal behavior.
4. Next step should be do NOT allow negative Posting for doing that : Go to Financial Management / Accounting/ Setup / Accounting Schema. Select the Accounting Schema to be used and set "Allow negative" to NO (unmarked).
5. Next step should be to create a BP (vendor) located in France and a Purchase order for that specific BP and Product assigned to Tax category = VAT 19%.

Intracommunity (Non-Deductible) - This scenario do not apply to HIS as in this case it is not related to VAT deductible at Organization level but at tax rate level. This scenario applies an Organization located in Germany and a Business Partner (vendor) do NOT located in Germany but France by example.
In this scenario Organization address/location must be Germany but Business partner address/location must be any of the European Union countries (France by example), therefore the purchase tax rates which must be used/selected by the system should be the ones setup as "Non-Deductible Intra-Community Purchase Tax Rate" because this scenario is a non-deductible scenario.
"Non-Deductible Intra-Community Purchase Tax rate" must be setup in the system as described below:

1. Go to Financial Management / Accounting / Setup / Tax category and create a new tax category as described below:
   1. Organization = Commercial org 1
   2. Name = VAT19%
   3. Description = VAT19%
   4. Active = yes.
2. Go to Master Data Management / Product and create a new product to be used on purchase/sales transactions
   1. It is really important to assign just created Tax category ("VAT19%) to the product.
   2. It is really important to assign a non-deductible Tax category to the BP by navigating to Financial Management || Accounting || Setup || Business Partner Tax Category || Business Partner Tax Category and the BP tax category created there must be setup to the BP at the application path: Master Data Management || Business Partner || Business Partner >> Vendor/Creditor (Tax category field) as well as to the tax rate Financial Management || Accounting || Setup || Tax Rate || Tax (Business Partner Tax category field).
3. Go to Financial Management / Accounting / Setup / Tax rate and create a new Tax Rate as summary one as detailed below:
   1. Name/Description = Non-Deductible Intracommunity purchase VAT 19%
   2. Active = yes
   3. Valid from date = 01/01/01
   4. Tax Category = VAT19%
   5. Sales/Purchase Type = Purchase Tax
   6. Summary Level = yes
   7. Rate = 0,00
   8. Country = France, Destination Country = Germany
   9. Go to Accounting tab and enter as Tax Credit account = 260000 and Tax Debit account = 480100
4. Go to Financial Management / Accounting / Setup / Tax rate and create a new tax rate as described below:
   1. Name / Description = Non-Deductible Intracommunity purchase VAT 19% (19%)
   2. Active = yes
   3. Valid from date = 01/01/01
   4. Tax category = VAT19%
   5. Sales/Purchase type = Purchase tax
   6. Parent Tax rate = Non-Deductible Intracommunity purchase VAT 19%
   7. Rate = 19,00
   8. Tax Not Deductible = Yes
   9. Country = France, Destination Country = Germany
   10. Go to Accounting tab an enter as Tax Credit account = 260000 and Tax Debit account = 480100
   11. Depending on Organization type posting will be different:
       1. For a Public Organization there is no impact as a Non-Deductible Intra Community Purchase VAT 19% (19%)" will be posted as an expense due to Organization Public check.
       2. For a Non Public Organization a Non-Deductible Intra Community Purchase VAT 19% (19%) will be posted as an expense due to Tax Not Deductible parameter checked.
5. Go to Financial Management / Accounting / Setup / Tax rate and create a new tax rate as described below:
   1. Name / Description = Deductible Intracommunity purchase VAT 19% (-19%)
   2. Active = yes
   3. Valid from date = 01/01/01
   4. Tax category = VAT19%
   5. Sales/Purchase type = Purchase tax
   6. Parent Tax rate = Non-Deductible Intracommunity purchase VAT 19%
   7. Rate = -19,00
   8. Tax Deductible = Yes
   9. Country = France, Destination Country = Germany
   10. Go to Accounting tab an enter as Tax Credit account =480100 and as Tax Debit account = 260000
   11. Depending on Organization type posting will be different:
       1. For a Public Organization Non-Deductible Intra Community Purchase VAT 19% (-19%) will be posted as VAT liability due to Tax Deductible Parameter.
       2. For a Non Public Organization Non-Deductible Intra Community Purchase VAT 19% (-19%) will be posted as VAT liability due to Tax Deductible Parameter.
6. Next step should be do NOT allow negative Posting for doing that : Go to Financial Management / Accounting/ Setup / Accounting Schema. Select the Accounting Schema to be used and set "Allow negative" to NO (unmarked).
7. Next step should be to create a BP (vendor) located in France and a Purchase order for that specific BP and Product assigned to Tax category = VAT 19%.

Scenario 1 (HIS Specs - Journal entry 2) = A commercial org entering a National Gross Amount Purchase Invoice (VAT included and deductible).

User input = Gross amount = 119 and National Purchase VAT rate = 19%

Net amount must be calculated by the system as = gross x100/(100+VAT rate) as well as the VAT amount as = gross*(VAT rate)/(100+VAT rate)

Scenario 1 posting

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		119,00
260000	VAT deductible	19,00
689000	Service expense	100,00

Scenario 2 = A Commercial organization entering a National Net Amount Purchase Invoice (VAT excluded but deductible).

User input = Net amount = 100 and National Purchase VAT rate = 19%

Gross amount = 119 (to be calculated by the system- default behavior)

Scenario 2 posting

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		119,00
260000	VAT deductible	19,00
689000	Service expense	100,00

Scenario 3 (HIS Specs - Journal entry 6) = A commercial org entering an Intracommunity purchase invoice (VAT deductible)

User input = Net amount = 100 and Intra-community Purchase VAT rate = (19%/-19%)

Gross amount = 100 (to be calculated by the system- default behavior)

Scenario 3 posting

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		100,00
260000	VAT deductible	19,00
480100	VAT liabilities		19,00
689000	Service expense	100,00

Scenario 4 (HIS Specs - Journal entry 4) = A Public Sector Org entering a National Gross amount purchase invoice (VAT included and not deductible because Public Sector Organization).

Public Sector flag must be selected.In this scenario Public Sector is not allowed to deduct VAT (no tax deduction) so VAT should be reflected as an expense; this is part of core enhancement "TaxPostingAsExpense" where the amount of "VAT deductible" must be booked as an expense.

User input = Gross amount = 119 and National Purchase VAT tax rate = 19%

Net amount must be calculated by the system as = gross x100/(100+VAT rate)
and VAT amount must be calculated as = gross*(VAT rate)/(100+VAT rate)

Scenario 4 posting:

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		119,00
689000	Service expense	119,00

Scenario 5 = A Public Sector org entering a National Net Amount purchase invoice (VAT excluded and not deductible because Public Sector Organization).

Public Sector flag must be selected.In this scenario Public Sector is not allowed to deduct VAT (no tax deduction) so VAT should be reflected as an expense; this is part of core enhancement "TaxPostingAsExpense" where the amount of "VAT deductible" must be booked as an expense.

User input = Net amount = 100 and National Purchase VAT rate = 19%

Gross amount = 100 (to be calculated by the system- default behavior)

Scenario 5 posting

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		119,00
689000	Service expense	119,00

Scenario 6 (HIS Specs - Journal Entry 3) = A Public Sector Org entering an Intracommunity purchase invoice(VAT not deductible because Public Sector Organization).

Public Sector flag must be selected.In this scenario Public Sector is not allowed to deduct VAT (no tax deduction) so VAT deductible should be reflected as an expense; this is part of core enhancement "TaxPostingAsExpense where the amount of "VAT deductible" must be booked as an expense and VAT liabilities must be booked as VAT liabilities.

¿?¿?Besides negative Intra-community Purchase VAT rate Child must be marked as Tax-Deductible because it will posted as VAT liability and not as an income¿?¿?.

User input = Net amount = 100 and Intra-community Purchase VAT rate = 19%-19%

Gross amount = 100 (to be calculated by the system- default behavior)

Scenario 6 posting

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		100,00
480100	VAT liabilities		19,00
689000	Service expense	119,00 (including VAT deductible)

Scenario 7 = A commercial org entering a National Gross Amount Purchase Invoice (VAT included but not-deductible).

User input = Gross amount = 119 and Non-Deductible National Purchase VAT rate = 19%

Net amount must be calculated by the system as = gross x100/(100+VAT rate) as well as the VAT amount as = gross*(VAT rate)/(100+VAT rate)

Scenario 1 posting

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		119,00
689000	Service expense	119,00

Scenario 8 = A Commercial organization entering a National Net Amount Purchase Invoice (VAT excluded as end-user enters a net amount and VAT not-deductible).

User input = Net amount = 100 and Non-Deductible National Purchase VAT rate = 19%

Gross amount = 119 (to be calculated by the system- default behavior)

Scenario 2 posting

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		119,00
689000	Service expense	119,00

Scenario 9 (HIS Specs - Journal entry 6) = A commercial org entering an Intracommunity purchase invoice (VAT not-deductible)

User input = Net amount = 100 and Not-deductible Intra-community Purchase VAT rate = (19%/-19%)

Gross amount = 100 (to be calculated by the system- default behavior)

Scenario 3 posting

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		100,00
480100	VAT liabilities		19,00
689000	Service expense	119,00

Sales Invoice Scenarios

There could be 2 type of Sales Invoice Scenarios:

1. National - this scenario applies to an Organization and a Business Partner (customer) both located in Germany.
   In this scenario Organization address/location as well as Business Partner address/location must be Germany, therefore the sales tax rates which must be used/selected by the system should be the ones setup as "National Sales Tax Rate 7%".
   National Sales Tax Rate 7% must be setup as described below:
   1. Go to Financial Management / Accounting / Setup / Tax category and create a new tax category as described below:
      1. Organization = HIS org
      2. Name = VAT7% or VAT19%
      3. Description = VAT7% or VAT 19%
      4. Active = yes.
   2. Go to Master Data Management / Product and create a new product to be used on sales transactions
      1. It is really important to assign just created Tax category ("VAT7% or VAT19%) to the product.
   3. Go to Financial Management / Accounting / Setup / Tax rate and create a new tax rate as described below:
      1. Name/Description = National Sales VAT 7% or National Sales VAT 19%
      2. Active = yes
      3. Valid from date = 01/01/01
      4. Tax category = VAT7% or VAT 19%
      5. Sales/Purchase Type = Sales Type
      6. Rate = 7,00 or 19,00
      7. Country = Germany and Destination country = Germany
      8. Go to Accounting tab and enter as Tax Credit account = 260000 and Tax Debit account = 480100
   4. Next step would be to create a BP (customer) located in Germany and make sure that Organization location is Germany and a Sales order for that specific BP and Product assigned to Tax category = VAT 7% or VAT 19% (both are valid and should be setup same way as described above).
2. Intracommunity - this scenario applies to an Organization located in Germany but Business Partner (customer) do NOT located in Germany.
   In this scenario Organization address/location must be Germany but Business partner address/location must be any of the European Union countries (France by example), therefore the sales tax rates which must be used/selected by the system should be the ones setup as "Intra-Community sales Tax Rate 7%=0%"
   "Intra-Community sales Tax Rate 19%=0%" must be setup as described below:
   1. Go to Financial Management / Accounting / Setup / Tax rate and create a new Tax Rate as summary one as detailed below:
      1. Name/Description = Intracommunity Sales VAT 19%=>0%
      2. Active = yes
      3. Valid from date = 01/01/01
      4. Tax Category = VAT19%
      5. Sales/Purchase Type = Sales Tax
      6. Rate = 0,00
      7. Country = Germany, Destination Country = France
      8. Go to Accounting tab and enter as Tax Credit account = 260000 and Tax Due account = 480100
   2. Next step should be to create a BP (customer) located in France and a Sales order for that specific BP and Product assigned to Tax category = VAT 19%.
   3. For products belonging to VAT 7% tax category a new tax rate for intra community sales 7%=>0% must be created as described above, this time pointing to tax category VAT7%.

Scenario 1 (HIS Specs – Journal entry 5) = A commercial organization issuing a National Gross amount sales invoice (VAT included).

User input = Gross amount = 107 and National Sales VAT rate = 7%

Net amount must be calculated by the system as = gross x100/(100+VAT rate) as well as the VAT amount as = gross*(VAT rate)/(100+VAT rate)

Scenario 1 posting:

Account nº	Name	Debit	Credit
240000	Account receivable	107,00
480100	VAT liabilities		7,00
531000	Income account		100,00

Scenario 2 = A commercial organization issuing a National Net amount sales invoice (VAT excluded)

User input = Net amount = 100 and National Sales VAT rate = 7%

Gross amount = 107 (to be calculated by the system- default behavior)

Scenario 2 posting:

Account nº	Name	Debit	Credit
240000	Account receivable	107,00
480100	VAT liabilities		7,00
531000	Income account		100,00

Scenario 3 = A commercial organization issuing an Intracommunity Net amount sales invoice

User input = Net amount = 100 and Intracommunity Sales Tax rate = 0% (VAT exempt Intra-community sales)

Gross amount = 100 (to be calculated by the system- default behavior)

Scenario 3 posting:

Account nº	Name	Debit	Credit
240000	Account receivable	100,00
531000	Income account		100,00

Scenario 4 = A public sector organization issuing a National Gross or Net amount sales invoice (No VAT sales applies to this scenario, therefore Gross and Net Amount are the same one).

User input = Gross amount = Net Amount = 100 . No Sales VAT rate (or exempt VAT rate)

Scenario 4 posting:

Account nº	Name	Debit	Credit
240000	Account receivable	100,00
531000	Income account		100,00

Scenario 5 = A public sector organization issuing an Intra-community Gross/Net amount sales invoice. (No Intracommunity VAT sales applies to this scenario, therefore Gross and Net Amount are the same one).

Public Sector flag must be selected.

User input = Gross Amount = Net Amount = 100

Scenario 6 posting:

Account nº	Name	Debit	Credit
240000	Account receivable	100,00
531000	Income account		100,00

Section 3: Functional requirements

Configuration

Sales & Purchase Order/Invoice lines changes

As part of Module 1 "GrossAmountsInvoiceLines" below new fields should be either modified or added s described, in order to allow the end-user to enter Gross and Net amounts at line level to be later on summed up.

HEADER

Procurement Management - Transactions - Purchase Order - Purchase Order header & Purchase Invoice header:

1. "Summed Line Amount" -> This field should be renamed as "Total Net Amount". Line net amounts summed up.
2. "Grand Total Amount" -> This field should be renamed as "Total Gross Amount". Line gross amounts summed up.

Same applies to Sales Order / Sales Invoices Header.

1. "Summed Line Amount" -> This field should be renamed as "Total Net Amount". Line net amounts summed up.
2. "Grand Total Amount" -> This field should be renamed as "Total Gross Amount". Line gross amounts summed up.

LINES

Procurement Management - Transactions - Purchase Order - Purchase Order lines

1. A new field named "Line Gross Amount" must be created next to "Line Net Amount" and should not be editable by default (same as "Line Net Amount" existing field) unless the corresponding new flag allows it is editable.
   1. Line Gross Amount must be equal to the line net amount + the corresponding taxes, therefore Line Gross Amount can be calculated by the system as = Line Net Amount + VAT amount or could it be entered by the end user in case the end-user selects the corresponding flag and make it editable, see below.
   2. In case of entering “Line Gross Amounts”, “Line Net Amount” should be re-calculated by the system as = gross amount x100/(100+tax rate)
2. A new flag named "Edit Net Amounts" must be created below "Net fields" in order to allow the end-user to edit "Line Net Amount" field as well as rest of "Net" fields.
3. A new flag named "Edit Gross Amounts" must be created below "Gross fields" in order to allow the end-user to edit "Line Gross Amount" field as well as rest of "Gross" fields.
4. "Unit Price" field must be renamed as "Net Unit Price"; as this price is coming from the corresponding Price List (currently this feature do NOT include taxes).
5. List Price field must be renamed as "Net List Price"; as this price is coming from the corresponding Price List (currently this feature do NOT include taxes).
6. Standard Price field must be renamed as "Net Standard Price"; as this price is coming from the corresponding Price List (currently this feature do NOT include taxes).
7. A new field named "Gross Unit Price" must be created under "Amounts" section. This field must shown Net Unit Price + taxes once a tax rate has been selected.
8. A new field named "Gross List Price" must be created under "Amounts" section. This field must shown Net List Price + taxes once a tax rate has been selected.
9. A new field named "Gross Standard Price" must be created under "Amounts" section. This field must shown Net Standard Price + taxes once a tax rate has been selected.
10. A new filed named "Tax amount" must be created in "Amount" section and must not be editable.
    1. In case of entering a Net amount the Tax amount = Net amount * VAT rate (%) - OB normal behavior
    2. In case of entering a Gross amount the Tax amount = Gross amount *(VAT rate)/(100+VAT rate)

Procurement Management - Transactions - Purchase Order - Purchase Invoice lines

1. A new field named "Line Gross Amount" must be created next to "Line Net Amount" and should not be editable by default (same as "Line Net Amount" existing field) unless the corresponding new flag allows it is editable.
   1. Line Gross Amount must be equal to the line net amount + the corresponding taxes, therefore Line Gross Amount can be calculated by the system as = Line Net Amount + VAT amount or could it be entered by the end user in case the end-user selects the corresponding flag and make it editable, see below.
   2. In case of entering “Line Gross Amounts”, “Line Net Amount” should be re-calculated by the system as = gross amount x100/(100+tax rate)
2. A new flag named "Edit Net Amounts" must be created below "Net fields" in order to allow the end-user to edit "Line Net Amount" field as well as rest of "Net" fields.
3. A new flag named "Edit Gross Amounts" must be created below "Gross fields" in order to allow the end-user to edit "Line Gross Amount" field as well as rest of "Gross" fields.
4. "Unit Price" field must be renamed as "Net Unit Price"; as this price is coming from the corresponding Price List (currently this feature do NOT include taxes).
5. List Price field must be renamed as "Net List Price"; as this price is coming from the corresponding Price List (currently this feature do NOT include taxes).
6. A new field named "Gross Unit Price" must be created under "Amounts" section. This field must shown Net Unit Price + taxes once a tax rate has been selected.
7. A new field named "Gross List Price" must be created under "Amounts" section. This field must shown Net List Price + taxes once a tax rate has been selected.
8. A new filed named "Tax amount" must be created in "Amount" section and must not be editable.
   1. In case of entering a Net amount the Tax amount = Net amount * VAT rate (%) - OB normal behavior
   2. In case of entering a Gross amount the Tax amount = Gross amount *(VAT rate)/(100+VAT rate)

Same applies to Sales Order & Sales Invoices Lines.

Public Sector Organization

As part of Core enhancement "TaxPostingAsExpense" implementation, a new flag must be created in order to differentiate Public Sector Organizations from Commercial Units at OB Organization level because there should be a way to differentiate Non-deductible Tax Organizations (or Public Sector organizations) from the organizations which are allowed to deduct taxes, besides a tax rate by default must be selected (exempt VAT) to be applied for sales invoices  :

That new flag and field must be created at below application path:

General Setup - Enterprise - Organization

Note: In the case of HIS that new flag must be named "Public Organization" but it could also be named "Tax Not deductible Organization"

Once a new OB Client is created by running Initial Client Setup process, an Organization/s must be created by running Initial Organization setup as part of that particular OB Client (Entity).

Just created organization/s must be set up as "ready" as well as marked as "Public" organization as shown in the screen below:

In case an Organization is setup as "Public Sector" organization:

• VAT deductible taxes (Purchase Invoices) must be posted/booked as an expense (product expense account)
• And in the case of Sales Invoices, the tax rate setup by default at organization level will be used in a transparent way for the end-user.

In our example above we used “Boots” product so “Product Expense” account below and "Product Income" account for that item should be the ones to be used while posting either a purchase or a sales invoice.

It is important to highlight that tax rates needs to be manage at sales/purchase order line level, therefore we need to create a new table named something like “C_InvoiceLineTax” in order to get header amounts match sum-up line amounts including VAT amounts.

Tax Not Deductible

As part of Core enhancement "TaxPostingAsExpense" implementation, existing flag "Not Tax-deductible" must be renamed to "Tax Not Deductible" and will allow the end user to post Purchase taxes as an expense in case it is checked.

As described above in the case of Public Sector Organizations, same applies here for the specif VAT rates set up as Tax Not Deductible = Yes:

• VAT deductible taxes (Purchase invoices) must be posted/booked as an expense (product expense account).

Tax Deductable

As part of Core enhancement "TaxPostingAsExpense" implementation, a new flag must be created in order to differentiate "Child" tax rate which must be posted to a tax related account in case of Public Sector Organizations.

That new flag must be created at below application path:

New flag above will help us to get below scenario working and therefore this parameter should be setup just for Liability Intra-Community Purchase VAT:

- A public sector organization which is not allowed to deduct VAT but at the same time needs liability Intra-Community Purchase VAT posted as VAT liability, if that is the case above flag should be marked.

Persona based scenarios

Purchase scenarios

Mike, the book keeping person, needs to book in the system different type of purchase invoices which come to him as a mixed stack.

Mike must be able to enter in the system both gross amounts as well as net amounts (current OB behavior) while entering purchase orders or purchase invoices.

As overall there are 2 “generic” purchase scenarios:

1. Purchase orders/invoices including taxes. It is important to note that for this scenario the end-user should select "Edit Line Gross Amount" flag in order to edit/enter Line Gross Amount.
2. Purchase orders/invoices do NOT including taxes. It is important to note that for this scenario the end-user should select "Edit Line Net Amount" flag in order to edit/enter Line Net Amount.
   

Plus few scenarios more based on the organization type entering the invoice (Commercial unit or Public sector organization) as well as the type of invoice being entered in the system(National or Intra-community type).

All scenarios below are explained based on Purchase Orders, same applies in case of Purchase Invoices. It is important to note that amounts entered, completed and posted at Purchase Order level can be modified by the end-user while entering the corresponding Purchase Invoice.

Scenario 1 (HIS Specs - Journal entry 2) = A commercial organization entering a “National” gross amount purchase order/invoice (VAT included and deductible).

In this scenario Mike must enter in the system a National purchase order/invoice for a commercial organization including taxes. For doing that he needs to navigate to “Procurement Management – Transactions – Purchase order/invoice”.

Once there he needs to create a new order/invoice by entering overall information as shown below:

• Client = HIS
• Organization = Commercial Unit A (located in Germany)
• Transaction document = "Purchase Order" (in case of purchase order)
• or Transaction document = "AP invoice" (in case of purchase invoice)
• Order date or Invoice date = 20 December 2009
• Business partner (vendor) = McGiver Supplies (located in Germany)
• Price List = Mike should select an standard price list (currently excluding taxes)

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding "ordered quantity" or “invoiced quantity” as well as the VAT rate and the “Line Gross Amount” after checking "Edit Line Gross Amount" flag:

By example:

Line 10

• Product=Item A (Tax category = VAT 19%)
• Quantity = 3 units
• Tax rate = National Purchase VAT rate = 19%
• Line Gross Amount = 575,52

After that the system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 161.21 (coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price= 191,84-> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate)
• Net Line amount= 483,63 -> Line Gross amount x 100 / (100+tax rate)
• Tax amount = 91,89 -> as the gross amount * VAT rate/(100 + VAT rate)

Invoice Totals should be as shown below:

• Grand Total Amount (Total Gross Amount) = 575,52
• Summed Line Amount (Total Net Amount)= 483,63

Scenario 1 posting should be as shown below based on the fact that Commercial organizations are allowed for input tax deduction:

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		575,52
260000	VAT deductible	91,89
689000	Service expense	483,63

In the case the end-user modify Line Gross Amount manually, Net unit price should be adjusted properly in order to allow consistency.

By example: the end-user enter a new Line Gross Amount = 600,50 and quantity remains equal to 3 units.

• Product=Item A (Tax category = VAT 19%)
• Quantity = 3 units
• Tax rate = National Purchase VAT rate = 19%
• Line Gross Amount = 600.50

After that the system should do below calculations:

• Gross Unit price = Line Gross amount / quantity = 600.50/ 3 units = 200.17
• Net Line amount= 504.63 -> Line Gross amount x 100 / (100+tax rate)
• Tax amount = 95.87 -> as the gross amount * VAT rate/(100 + VAT rate)
• Net Unit price = Line Net amount / quantity = 504.62 / 3 units = 168.21

Invoice Totals should be as shown below:

• Grand Total Amount (Total Gross Amount) = 600.50
• Summed Line Amount (Total Net Amount)= 504.63

NOTE= Same applies to all scenarios below in relation to Net or Gross Price adjustments in case the end-user manually modify either Line Net or Gross Amounts.

Scenario 2 = A commercial organization entering a “National” Net amount purchase order/invoice (VAT excluded and Deductible)

In this scenario Mike must enter in the system a national purchase invoice for a commercial organization excluding taxes. For doing that he needs to navigate to “Procurement Management – Transactions – Purchase Order/Purchase Invoice”.

Once there he needs to create a new invoice by entering overall information as:

• Client = HIS
• Organization = Commercial Unit A (located in Germany)
• Transaction document = "Purchase Order" (in case of purchase order)
• Transaction document = "AP invoice” (in case of purchase invocie)
• Order date or Invoice date = 20 December 2009
• Business partner (vendor) = McGiver Supplies (located in Germany)
• Price List = Mike should select an standard price list (currently excluding taxes).

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding "ordered quantity" or “invoiced quantity” and the VAT rate and the “Line Net Amount” after checking "Edit Line Net Amount" flag:

By example:

Line 10

• Product= Item A (Tax category = VAT 19%)
• Invoiced quantity = 3 units
• Tax rate = National Purchase VAT rate = 19%
• Line Net Amount = 450,00

After that system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 150,00 (coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price= 178,50 -> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate)
• Tax amount = 85,50 -> as Line Net Amount * VAT rate
• Line Gross Amount = 535,50 -> as Line Net Amount + Tax amount

Line 20

• Product= Item B
• Invoiced quantity = 5 units
• Tax rate = VAT rate = 19%
• Line Net Amount = 2250,00

After that system should do below calculations:

• Net Unit price & Net List price = 450,00 (coming from the price list do not including taxes)
• Gross Unit price & Gross List Price = 178,50 -> as the Net unit/list price + (Net unit/list price * VAT rate)
• Tax amount = 427,50 -> as Line Net Amount * VAT rate
• Line Gross Amount = 2677.50 -> as Line Net Amount + Tax amount

Invoice Totals should be as shown below:

• Grand Total Amount (Total Gross Amount) = 3213,00
• Summed Line Amount (total Net Amount)= 2700

Scenario 2 posting should be as shown below based on the fact that Commercial organizations are allowed for input tax deduction:

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		3213,00
260000	VAT deductible	513,00
689000	Service expense	2700

Scenario 3 (HIS Specs - Journal entry 6) = A commercial organization entering an “Intracommunity” purchase order/ invoice (VAT deductible)

In this scenario Mike must enter in the system an intra-community purchase order / invoice for a commercial organization. For doing that he needs to navigate to “Procurement Management – Transactions – Purchase Order/ Invoice”.

Once there he needs to create a new invoice by entering overall information as:

• Client = HIS
• Organization = Commercial Unit A (located in Germany)
• Transaction document = "Purchase Order" (in case of a Purchase Order)
• Transaction document = “AP invoice” (in case of a Purchase Invoice)
• Document / Invoice date = 20 December 2009
• Business partner (vendor) = EU Supplier (located in France)
• Price List = Mike should select an standard price list (currently excluding taxes).

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding “invoiced quantity”, “Line Net or Gross Amount” and the VAT rate per each purchase line entered after checking either "Edit Line Net Amount" or "Edit Line Gross Amount" flag, because both amounts are the same ones:

By example:

Line 10

• Product=Item A (Tax category = VAT 19%)
• Ordered/Invoiced quantity = 3 units
• Tax rate = Intra-community Purchase VAT rate = 19% / -19% (summary tax rate)
• Line Net Amount or Line Gross Amount = 450,00

After that system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 150.00 (coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price= 150.00> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate)
• Tax amount = 0
  • Tax amount = Line Net Amount * VAT rate (19%&) = 85,50
  • Tax amount = Line Net Amount * VAT rate (-19%) = -85,50
• Line Gross Amount = Line Net Amount +/- Tax amount = 450,00

Scenario 3 posting should be as shown below based on the fact that Commercial organizations are allowed for input tax deduction:

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		450,00
260000	VAT deductible (19%)	85,50
480100	VAT liabilities (-19%)		85,50
689000	Service expense	450,00

Scenario 4 (HIS Specs - Journal entry 4) = A public sector organization entering a “National” Gross amount purchase order/invoice (VAT included but not Deductible because of Public Sector Organization)

In this scenario Mike must enter in the system a national purchase order/invoice for a public organization including taxes.

For doing that Mike needs to check that "Public Organization" flag is selected for the Public Sector Organization he is going to enter the purchase order/invoice to.

After that he needs to navigate to “Procurement Management – Transactions – Purchase Order/Invoice”.

Once there he needs to create a new invoice by entering overall information as:

• Entity = HIS
• Organization = HISOrg- Public Sector (located in Germany) - Set up as Public Organization.
• Transaction document type = "Purchase Invoice" (in case of a Purchase order)
• Transaction document type = “AP invoice” (in case of a Purchase invoice)
• Order / Invoice date = 20 December 2009
• Business partner (vendor) = McGiver Supplies (located in Germany)
• Price List = Mike should select an standard price list (currently do not including taxes).

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding “invoiced quantity”,"VAT rate" and “Line Gross Amount” after checking "Edit Line Gross Amount" flag.

By example:

Line 10

• Product= Item A (Tax category = VAT 19%)
• Invoiced quantity = 3 units
• Tax rate = National Purchase VAT rate = 19%
• Line Gross Amount = 575,52

After that system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 161.21 (coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price= 191,84-> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate)
• Net Line amount = 483,63-> as the gross amount x 100 / (100+tax rate)
• Tax amount = 91,89-> as the gross amount * VAT rate/(100 + VAT rate)

In this scenario Public Sector is not allowed to deduct VAT (no tax deduction) therefore VAT deductible must be posted/booked as an expense (Tax as Expense module)
Scenario 4 posting should be as shown below:

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		575,52
689000	Service expense	575,52

Scenario 5 = A public sector organization entering a “National” Net amount purchase order/invoice (VAT excluded and not deductible because of Public Sector Organization)

In this scenario Mike must enter in the system a national purchase order/ invoice for a public sector organization excluding taxes.

For doing that Mike needs to check that "Public Organization" flag is selected for the Public Sector organization he is going to enter the purchase order/invoice for.

After that he needs to navigate to “Procurement Management – Transactions – Purchase order/invoice”.

Once there he needs to create a new order/ invoice by entering overall information as:

• Client = HIS
• Organization = HISOrg-Public Sector (located in Germany) - Set up as "Public Sector" organization.
• Transaction document = "Purchase Order" (in case of a purchase order)
• Transaction document = “AP invoice” (in case of a purchase invoice)
• Order/Invoice date = 20 December 2009
• Business partner (vendor) = Mc Giver Supplies (located in Germany)
• Price List = Mike should select an standard price list (currently do not including taxes).

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding “invoiced quantity”, "VAT rate" and “Line Net Amount" after selecting "Edit Line Net Amount" flag.

By example:

Line 10

• Product=Item A (Tax category = VAT 19%)
• Invoiced quantity = 3 units
• Tax rate = National Purchase VAT rate = 19%
• Line Net Amount = 450,00
  

After that system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 150.00 (coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price= 178.50 -> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate)
• Tax amount =85,50 -> as Line Net Amount * VAT rate
• Line Gross Amount = 535,50 -> as Line Net Amount + Tax amount

In this scenario Public Sector is not allowed to deduct VAT (no tax deduction) and besides VAT deductible should be reflected as an expense (Tax as Expense), therefore scenario 5 posting should be as shown below:

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		535,50
689000	Service expense (including VAT deductible)	535,50

Scenario 6 (HIS Specs – Journal entry 3) = A public sector organization entering an “Intra-community” purchase order/invoice (VAT not deductible because of Public Sector Organization

In this scenario Mike must enter in the system an intra-community purchase invoice for a public sector organization.

For doing that he needs to navigate to “Procurement Management – Transactions – Purchase order/invoice”.

Once there he needs to create a new invoice by entering overall information as:

• Client = HIS
• Organization = HISOrg-Public Sector (located in Germany) - Set up as "Public Sector" organization.
• Transaction document = "Purchase Order" (in case of purchase order)
• Transaction document = “AP invoice”(in case of purchase invoice)
• Order/Invoice date = 20 December 2009
• Business partner (vendor) = EU Supplier (located in France)
• Price List = Mike should select an standard price list currently do not including taxes.

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding “invoiced quantity”, "VAT rate" and the “Line Gross Amount” after selecting "Edit Line Gross Amount" flag.

By example:

Line 10

• Product=Item A (Tax category = VAT 19%)
• Invoiced quantity = 3 units
• Tax rate = Intra-community Purchase VAT rate = 19% / -19% (set as Tax Deductible)
• Line Gross Amount = 535,50

After that system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 150.00(coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price= 178.50-> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate)
• Line Net Amount = 450,00 -> as Line gross amount * 100 / (100 + tax rate)
• Tax amount = 85,50 -> as the gross amount *VAT rate/(100+VAT rate)

In this scenario Public Sector is not allowed to deduct VAT (no tax deduction) therefore VAT deductible must be posted/booked as an expense (Tax as Expense module) and besides negative Intra-Community Purchase VAT (-19%) must be book as VAT liability
Scenario 6 posting should be as shown below:

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		450,00
480100	VAT liabilities		85,50
689000	Service expense (including VAT deductible)	535,50

Scenario 7 = A commercial organization entering a “National” gross amount purchase order/invoice (VAT included and non-deductible).

In this scenario Mike must enter in the system a National purchase order/invoice for a commercial organization including taxes. For doing that he needs to navigate to “Procurement Management – Transactions – Purchase order/invoice”.

Once there he needs to create a new order/invoice by entering overall information as shown below:

• Client = HIS
• Organization = Commercial Unit A (located in Germany)
• Transaction document = "Purchase Order" (in case of purchase order)
• or Transaction document = "AP invoice" (in case of purchase invoice)
• Order date or Invoice date = 20 December 2009
• Business partner (vendor) = Mafalda Supplies (located in Germany). BP tax category = Non-Deductible
• Price List = Mike should select an standard price list (currently excluding taxes)

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding "ordered quantity" or “invoiced quantity” as well as the VAT rate and the “Line Gross Amount” after checking "Edit Line Gross Amount" flag:

By example:

Line 10

• Product=Item A (Tax category = VAT 19%)
• Quantity = 3 units
• Tax rate = Non-deductible National Purchase VAT rate = 19%
• Line Gross Amount = 575,52

After that the system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 161.21 (coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price= 191,84-> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate)
• Net Line amount= 483,63 -> Line Gross amount x 100 / (100+tax rate)
• Tax amount = 91,89 -> as the gross amount * VAT rate/(100 + VAT rate)

Invoice Totals should be as shown below:

• Grand Total Amount (Total Gross Amount) = 575,52
• Summed Line Amount (Total Net Amount)= 483,63

Scenario 1 posting should be as shown below based on the fact that the tax rates was setup as Non-Deductible tax rate, therefore VAT has to be posted as an expense:

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		575,52
689000	Service expense	575,52

In the case the end-user modify Line Gross Amount manually, Net unit price should be adjusted properly in order to allow consistency.

By example: the end-user enter a new Line Gross Amount = 600,50 and quantity remains equal to 3 units.

• Product=Item A (Tax category = VAT 19%)
• Quantity = 3 units
• Tax rate = Non-Deductible National Purchase VAT rate = 19%
• Line Gross Amount = 600.50

After that the system should do below calculations:

• Gross Unit price = Line Gross amount / quantity = 600.50/ 3 units = 200.17
• Net Line amount= 504.63 -> Line Gross amount x 100 / (100+tax rate)
• Tax amount = 95.87 -> as the gross amount * VAT rate/(100 + VAT rate)
• Net Unit price = Line Net amount / quantity = 504.62 / 3 units = 168.21

Invoice Totals should be as shown below:

• Grand Total Amount (Total Gross Amount) = 600.50
• Summed Line Amount (Total Net Amount)= 504.63

Scenario 8 = A commercial organization entering a “National” Net amount purchase order/invoice (VAT excluded and Non-Deductible)

In this scenario Mike must enter in the system a national purchase invoice for a commercial organization excluding taxes. For doing that he needs to navigate to “Procurement Management – Transactions – Purchase Order/Purchase Invoice”.

Once there he needs to create a new invoice by entering overall information as:

• Client = HIS
• Organization = Commercial Unit A (located in Germany)
• Transaction document = "Purchase Order" (in case of purchase order)
• Transaction document = "AP invoice” (in case of purchase invoice)
• Order date or Invoice date = 20 December 2009
• Business partner (vendor) = Mafalda Supplies (located in Germany) and set to BP Tax Category = Non-Deductible.
• Price List = Mike should select an standard price list (currently excluding taxes).

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding "ordered quantity" or “invoiced quantity” and the VAT rate and the “Line Net Amount” after checking "Edit Line Net Amount" flag:

By example:

Line 10

• Product= Item A (Tax category = VAT 19%)
• Invoiced quantity = 3 units
• Tax rate = Non-Deductible National Purchase VAT rate = 19%
• Line Net Amount = 450,00

After that system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 150,00 (coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price= 178,50 -> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate)
• Tax amount = 85,50 -> as Line Net Amount * VAT rate
• Line Gross Amount = 535,50 -> as Line Net Amount + Tax amount

Line 20

• Product= Item B
• Invoiced quantity = 5 units
• Tax rate = VAT rate = 19%
• Line Net Amount = 2250,00

After that system should do below calculations:

• Net Unit price & Net List price = 450,00 (coming from the price list do not including taxes)
• Gross Unit price & Gross List Price = 178,50 -> as the Net unit/list price + (Net unit/list price * VAT rate)
• Tax amount = 427,50 -> as Line Net Amount * VAT rate
• Line Gross Amount = 2677.50 -> as Line Net Amount + Tax amount

Invoice Totals should be as shown below:

• Grand Total Amount (Total Gross Amount) = 3213,00
• Summed Line Amount (total Net Amount)= 2700

Scenario 2 posting should be as shown below based on the fact that tax rate was setup as non-deductible, therefore VAT posting should be as an expense:

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		3213,00
689000	Service expense	3213,00

Scenario 9 = A Commercial organization entering an “Intra-community” purchase order/invoice (VAT not deductible)

In this scenario Mike must enter in the system an intra-community purchase invoice for a commercial organization.

For doing that he needs to navigate to “Procurement Management – Transactions – Purchase order/invoice”.

Once there he needs to create a new invoice by entering overall information as:

• Client = HIS
• Organization = Commercial Unit C (located in Germany) - Do NOT Set up as "Public Sector" organization.
• Transaction document = "Purchase Order" (in case of purchase order)
• Transaction document = “AP invoice”(in case of purchase invoice)
• Order/Invoice date = 20 December 2009
• Business partner (vendor) = EU Supplier (located in France)
• Price List = Mike should select an standard price list currently do not including taxes.

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding “invoiced quantity”, "VAT rate" and the “Line Gross Amount” after selecting "Edit Line Gross Amount" flag.

By example:

Line 10

• Product=Item A (Tax category = VAT 19%)
• Invoiced quantity = 3 units
• Tax rate = Non-Deductible Intra-community Purchase VAT rate = 19% (set to Tax Not Deductible) / -19% (set to Tax Deductible)
• Line Gross Amount = 535,50

After that system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 150.00(coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price= 178.50-> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate)
• Line Net Amount = 450,00 -> as Line gross amount * 100 / (100 + tax rate)
• Tax amount = 85,50 -> as the gross amount *VAT rate/(100+VAT rate)

In this scenario Public Sector is not allowed to deduct VAT (no tax deduction) therefore VAT deductible must be posted/booked as an expense (Tax as Expense module) and besides negative Intra-Community Purchase VAT (-19%) must be book as VAT liability
Scenario 6 posting should be as shown below:

Account nº	Name	Debit	Credit
440000	Vendor Liabilities		450,00
480100	VAT liabilities		85,50
689000	Service expense (including VAT deductible)	535,50

Scenario 10 Purchase Credit Invoices.

Mike needs to enter a negative AP invoice or an AP Credit Memo. For those cases above purchase scenarios also apply but below set of data:

• Transaction document type = AP Credit Memo or AP Invoice
• Invoiced quantity = it should be positive in case of an AP credit memo and negative in case of an AP Invoice
• Ledger Posting should be the opposite one for the corresponding scenario as we are not talking about purchase invoices but purchase credit invoices.
  

Sales scenarios

Mike, the book keeping person, needs to book in the system different type of sales invoices which come to him as a mixed stack.

Mike must be able to enter in the system both gross amounts as well as net amounts (current OB behavior) while entering sales orders or sales invoices.

As overall there are 2 “generic” sales scenarios:

1. Sales orders/invoices including taxes. It is important to note that for this scenario the end-user should select "Edit Line Gross Amount" flag in order to edit/enter Line Gross Amount.
2. Sales orders/invoices do NOT including taxes. It is important to note that for this scenario the end-user should select "Edit Line Net Amount" flag in order to edit/enter Line Net Amount.
   

Plus few scenarios more based on the organization type entering the invoice (Commercial unit or Public sector organization) as well as the type of invoice being entered in the system(National or Intra-community type).

All scenarios below are explained based on Sales Orders, same applies in case of Sales Invoices. It is important to note that amounts entered, completed and posted at Sales Order level can be modified by the end-user while entering the corresponding Sales Invoice.

Scenario 1 (HIS Specs - Journal entry 5) = A commercial organization issuing a “National” gross amount sales order/invoice (VAT included)

In this scenario Mike must enter in the system a national sales order/invoice for a commercial organization including taxes.

For doing that he needs to navigate to “Sales Management – Transactions – Sales Order/ Invoice”.

Once there he needs to create a new invoice by entering overall information as:

• Client = HIS
• Organization = Commercial Unit A (located in Germany)
• Transaction document = "Standard Order" (in case of a sales order)
• Transaction document type = “AR invoice” (in case of sales invoice)
• Order/Invoice date = 20 December 2009
• Business partner (customer) = Mafalda (located in Germany)
• Sales Price List = Mike should select an standard sales price list currently do not including taxes.

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding “invoiced quantity”, "VAT rate" and “Line Gross Amount” after selecting "Edit Line Gross Amount" flag.

By example:

Line 10

• Product=Item X (Tax category = VAT 7%)
• Invoiced quantity = 3 units
• Tax rate = National Sales VAT rate 7% = 7%
• Line Gross Amount = 650,55

After that system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 202.66(coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price= 216,85-> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate)
• Net Line amount = 607,99 -> as gross amount x 100 / (100+tax rate)
• Tax amount = 42,56 -> as gross amount * VAT rate/(100 + VAT rate)

Invoice Totals should be as shown below:

• Grand Total Amount (Total Gross Amount) = 650,55
• Summed Line Amount (Total Net Amount)= 607,99

Scenario 1 posting should be as shown below based on the fact that Commercial organizations are allowed for input tax deduction:

Account nº	Name	Debit	Credit
240000	Account receivable	650,55
480100	VAT liabilities		42,56
531000	Income account		607,99

Scenario 2 = A commercial organization issuing a “National” Net amount sales order/invoice (VAT excluded)

In this scenario Mike must enter in the system a national sales order/invoice for a commercial organization excluding taxes.

For doing that he needs to navigate to “Sales Management – Transactions – Sales Order/Invoice”.

Once there he needs to create a new invoice by entering overall information as:

• Client = HIS
• Organization = Commercial Unit A (located in Germany)
• Transaction document = "Standard order" (in case of sales order)
• Transaction document = “AR invoice” (in case of sales invoice)
• Order/Invoice date = 20 December 2009
• Business partner (customer) = Mafalda (located in Germany)
• Sales Price List = Mike should select an standard sales price list currently do not including taxes.

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding “invoiced quantity”, "VAT rate" and “Line Net Amount” after selecting "Edit Line Net Amount" flag.

By example:

Line 10

• Product=Item A (Tax category = VAT 19%)
• Invoiced quantity = 3 units
• Tax rate = National Sales VAT rate 19% = 19%
• Line Net Amount = 450,00

After that system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 150.00(coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price= 178.50-> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate)
• Tax amount =85,50 -> as Line Net Amount * VAT rate
• Line Gross Amount = 535,50 -> as Line Net Amount + Tax amount

Scenario 2 posting should be as shown below based on the fact that Commercial organizations are allowed for input tax deduction:

Account nº	Name	Debit	Credit
240000	Account receivable	535,50
480100	VAT liabilities		85,50
531000	Income account		450,00

Scenario 3= A commercial organization issuing an “Intracommunity” Net amount sales invoice

In this scenario Mike must enter in the system an intra-community sales order/ invoice for a commercial organization.

For doing that he needs to navigate to “Sales Management – Transactions – Sales Order/Invoice”.

Once there he needs to create a new invoice by entering overall information as:

• Client = HIS
• Organization = Commercial Unit A (located in Germany)
• Transaction document = "Standard Order" (in case of sales order)
• Transaction document = “AR invoice”(in case of sales invoice)
• Order / Invoice date = 20 December 2009
• Business partner (customer) = EU customer (located in France)
• Sales Price List = Mike should select an standard sales price list currently do not including taxes.

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding "ordered quantity" or “invoiced quantity”, "VAT rate" and “Line Net Amount” after selecting "Edit Line Net Amount" flag.

By example:

Line 10

• Product=Item A (Tax category = VAT 19%)
• Invoiced quantity = 3 units
• Tax rate = Intra-community Sales VAT rate Exempt(19%=>0%)
• Line Net Amount = 450,00

After that system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 150.00(coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price=150.00-> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate)
• Tax amount = 0,00 -> as Line Net Amount * VAT rate (0%)
• Line Gross Amount = 450,00 -> as the Line Net Amount + Tax amount = 450,00

Scenario 3 posting should be as shown below based on the fact that Commercial organizations are allowed for input tax deduction:

Account nº	Name	Debit	Credit
240000	Account receivable	450,00
531000	Income account		450,00

Scenario 4 = A public sector organization issuing a “National” Gross or Net amount sales invoice (No VAT Sales applies to this scenario)

In this scenario Mike must enter in the system a national sales order/invoice for a public organization. No VAT Sales.

For doing that Mike needs to check that "Public Organization" flag is selected for the Public Sector Organization he is going to enter the sales order/invoice to; besides he should select an Exempt VAT by default to be used here.

After that he needs to navigate to “Sales Management – Transactions – Sales Order / Invoice”.

Once there he needs to create a new invoice by entering overall information as:

• Client = HIS
• Organization = HISOrg-Public Sector (located in Germany) - Setup as Public Sector Organization and Tax Rate = Exempt VAT
• Transaction document = "Standard Order" (in case of sales order)
• Transaction document = “AR invoice” (in case of sale invoice)
• Order/Invoice date = 20 December 2009
• Business partner (customer) = Mafalda (located in Germany)
• Sales Price List = Mike should select an standard sales price list currently do not including taxes.

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding “invoiced quantity”, "VAT rate" and “Line Gross Amount” after selecting "Edit Line Gross Amount" flag

By example:

Line 10

• Product= Item A (Tax category = VAT 19%)
• Invoiced quantity = 3 units
• Tax rate = automatically filled in as "Exempt VAT"
• Line Gross Amount = 575,52

After that system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 191.84 (coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price= 191.84-> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate =0,00)
• Net Line amount = 575,52 -> as gross amount x 100 / (100+tax rate = 0,00)
• Tax amount = 0,00

Scenario 4 posting

Account nº	Name	Debit	Credit
240000	Account receivable	575,52
531000	Income account		575,52

Scenario 5 = A public sector organization issuing an “Intracommunity” Gross or Net amount sales invoice (No VAT Sales applies to this scenario)

In this scenario Mike must enter in the system a national sales order/invoice for a public organization. No VAT Sales.

For doing that Mike needs to check that "Public Organization" flag is selected for the Public Sector Organization he is going to enter the sales order/invoice to besides and Exempt VAT Sales Tax rate must be selected.

After that he needs to navigate to “Sales Management – Transactions – Sales Order / Invoice”.

Once there he needs to create a new invoice by entering overall information as:

• Client = HIS
• Organization = HISOrg-Public Sector (located in Germany) - Setup as Public Sector Organization and Tax Rate = Exempt VAT (for sales).
• Transaction document = "Standard Order" (in case of sales order)
• Transaction document = “AR invoice” (in case of sale invoice)
• Order/Invoice date = 20 December 2009
• Business partner (customer) = Mc Giver (do not located in Germany)
• Sales Price List = Mike should select an standard sales price list currently do not including taxes.

Once the above is done he should navigate to “Lines” tab, create a new line and select the product/item to be ordered/invoiced as well as enter the corresponding “invoiced quantity”, "VAT rate" and “Line Gross Amount” after selecting "Edit Line Gross Amount" flag

By example:

Line 10

• Product= Item A (Tax category = VAT 19%)
• Invoiced quantity = 3 units
• Tax rate = automatically filled-in Exempt VAT
• Line Gross Amount = 575,52

After that system should do below calculations:

• Net Unit & Net List price & Net Standard Price = 191.84 (coming from the price list do not including taxes)
• Gross Unit price & Gross List Price & Gross Standard Price= 191.84-> as the Net unit/list/standard price + (Net unit/list/standard price * VAT rate =0,00)
• Net Line amount = 575,52 -> as gross amount x 100 / (100+tax rate = 0,00)
• Tax amount = 0,00

In this scenario VAT liabilities must be booked as an income.

Scenario 4 posting

Account nº	Name	Debit	Credit
240000	Account receivable	575,52
531000	Income account		575,52

Scenario 6 Sales Credit Invoices

Mike needs to enter a negative AR invoice or an AR Credit Memo. For those cases above sales scenarios also apply but below set of data:

• Transaction document type = AR Credit Memo or AR Invoice
• Invoiced quantity = it should be positive in case of an AR credit memo and negative in case of an AR Invoice
• Ledger Posting should be the opposite one for the corresponding scenario as we are not talking about purchase invoices but purchase credit invoices.

Tax Deductible & Not Tax Deductible scenarios

Below scenarios should work:

1. A public sector organization which have few Not Tax Deductible tax rates setup - Not Tax Deductible tax rates for a "Non-deductible" organization (Public Sector Organization) will keep as not deductible.
2. A public sector organization which have few Tax Deductible tax rates setup - Tax Deductible tax rates for a "Non-deductible" organization (Public Sector Organization) will keep as deductible.
3. A Commercial unit which have few Not Tax Deductible tax rates setup - Not Tax Deductible tax rates for a "Deductible" organization (Commercial Organization) will keep as not deductible.
4. A Commercial unit which have few Tax Deductible tax rates setup - Tax Deductible tax rates for a "Deductible" (Commercial Organization) will keep as deductible.

Design & Technical considerations

Design considerations

To be confirmed by Development Team

It is important to highlight that tax rates needs to be manage at sales/purchase order/invoice line level, therefore we need to create a new table named something like “C_InvoiceLineTax”.

This feature needs to manage tax amounts rounding in order to get that the VAT amount calculated at Sales/Purchase invoice header match the sum of the VAT amounts calculated at Sales/Purchase invoice lines.

Technical constraints

None.

To be confirmed by Development Team

Technical requirements

To be confirmed by Development Team

Object type	Data type	Value constrain	Default value	Visible & Editable	Label	Help text
New flag "General Setup - Enterprise - Organization"	Chart (1 byte)	Yes/No	No	Yes	“Public Organization”	Select in case of creating a Public Sector organization
New flag "financial Management - Accounting - Setup - Tax Rate - Tax"	Chart (1 byte)	Yes/No	No	Yes	“Tax-Deductible”	Select in case of a Deductible tax rate
New flag "Procurement Management - Purchase Order/Purchase Invoice - Lines"	Chart (1 byte)	Yes/No	No	Yes	“Edit Line Net Amounts”	Select in case of editing/entering Line Net Amounts
New flag "Procurement Management - Purchase Order/Purchase Invoice - Lines"	Chart (1 byte)	Yes/No	No	Yes	“Edit Line Gross Amounts”	Select in case of editing/entering Line Gross Amounts
New flag "Sales Management - Sales Order/Sales Invoice - Lines"	Chart (1 byte)	Yes/No	No	Yes	“Edit Net Amounts”	Select in case of editing/entering Line Net Amounts
New flag "Sales Management - Sales Order/Sales Invoice - Lines"	Chart (1 byte)	Yes/No	No	Yes	“Edit Gross Amounts”	Select in case of editing/entering Line Gross Amounts
New field "Procurement/Sales Management - Transactions - Purchase/Sales Order & Purchase/Sales Invoice - Lines"	Numeric	Net amount including taxes	No	Yes	“Line Gross Amount"	Gross Line Amount (Net Amount including taxes)
New field "Procurement/Sales Management - Transactions - Purchase/Sales Order & Purchase/Sales Invoice - Lines"	Numeric	tax amount based on tax rate selected	No	Yes	“Tax Amount"	Tax amount based on selected Tax rate
Field changed "Procurement/Sales Management - Transactions - Purchase/Sales Order & Purchase/Sales Invoice - Lines"	Numeric	Net Unit Price	No	Yes	“Net Unit Price"	Unit Price excluding taxes
Field changed "Procurement/Sales Management - Transactions - Purchase/Sales Order & Purchase/Sales Invoice - Lines"	Numeric	Net List Price	No	Yes	“Net List Price"	List Price excluding taxes
Field changed "Procurement/Sales Management - Transactions - Purchase/Sales Order - Lines"	Numeric	Net Standard Price	No	Yes	“Net Standard Price"	Standard Price excluding taxes
New field "Procurement/Sales Management - Transactions - Purchase/Sales Order & Purchase/Sales Invoice - Lines"	Numeric	Net Unit price including taxes	No	Yes	“Gross Unit Price"	Unit price including taxes
New field "Procurement/Sales Management - Transactions - Purchase/Sales Order & Purchase/Sales Invoice - Lines"	Numeric	Net Unit price including taxes	No	Yes	“Gross List Price"	List price including taxes
New field "Procurement/Sales Management - Transactions - Purchase/Sales Order Lines"	Numeric	Net Unit price including taxes	No	Yes	“Gross Standard Price"	Standard price including taxes
New parameter	Chart	Yes/No	No	Yes	“Tax as Expense”	This parameter should be selected in case of Public Organizations in case of non-deductible taxes which should be posted as an expense.

User Interface

New user interface

N/A

User interface changes

See above at Setup sections.

License

This module should under OB Commercial License.

Discussion items

Open topic nº	Owner	Status	Comments

Appendix