Creating an Adjustment Calculation for a Sales VAT Invoice

According to the Tax Code of Ukraine, if, after the delivery of items/services, any change in the amount of compensation for their value is carried out, including a revision of prices, recalculation in cases of return of items/services to the person who provided them, or when a vendor returns the amount of prepayment for items/services, the amount of tax liabilities and the tax credit of the vendor and the recipient, as well as in the case of correcting errors made when drafting the VAT invoice, including those not related to the change in the amount of compensation for the cost of items/services, it is necessary to draft an adjustment calculation for a VAT invoice.

The system generates adjustment calculation based on posted sales credit memos and refunds.

The system can generate adjustment calculations in the following ways:

With a periodic job. Read more in Generating Sales VAT Invoices for the period,
From a Customer Ledger Entry or a posted sales credit memo by selecting Create VAT invoice. Read more in Creating Sales VAT Invoices manually,
From a posted VAT invoice using the Create Appendix 2 function,
Manually on the Sales VAT Invoice List page.

The creation of an Adjustment Calculation for a Sales Credit Memo depends on the value set in the Reason for creating the Appendix 2 upon return field. There are three possible reasons for creating an Adjustment Calculation:

Return of goods or Settlement (Create VAT Invoice + Appendix 2)- both an VAT Invoice and a Appendix 2 are created from the Sales Credit Memo. The logic is the same as when the setting in the corresponding VAT Business Posting Group > Do Not Create Appendix 2 + VAT Invoice for Credit Memo = No.
Replacement of items without changing the item – no Adjustment Calculation is created from the Sales Credit Memo. The logic matches the case when the setting in the corresponding VAT Business Posting Group > Do Not Create Appendix 2 + VAT Invoice for Credit Memo = Yes. In this case, the Appendix 2 will be created from the Refund.
Confirmation of advance payment return - an Appendix 2 is created from the Sales Credit Memo, where the first event is the Credit Memo (goods return). No Appendix 2 is created from the Refund (second event).

The reason value is populated when creating an unposted Sales Credit Memo according to the Do Not Create Appendix 2 + VAT Invoice for Credit Memo setting in the VAT Business Posting Group and is carried over to the posted Sales Credit Memo upon posting. If necessary, the value of the Reason for Creating Adjustment Calculation on Return field can be adjusted in the posted document using the Update Document function.

To post an Adjustment Calculation, it is necessary to note some features of filling it out:

the Applied Invoice No. field is mandatory. When creating an Adjustment Calculation, the system analyzes the operation for which the adjustment is made, finds the corresponding VAT invoice and automatically fills out the Original invoice for Appendix 2 field,
the Adjustment Reason Code field in the lines of the Adjustment Calculation is also mandatory. It is filled out automatically depending on the type of adjustment. Read more about setting up Adjustment reason codes in VAT Posting Setup.

To control the correspondence of the lines in Adjustment Calculation and VAT Invoice, it is necessary to pay attention to the Index field in the lines of Adjustment Calculation and VAT Invoice. The index of the Adjustment Calculation line must correspond to the index of VAT Invoice line that is being adjusted. Also for the analysis and control of the Adjustment Calculations, VAT Invoices contain a Appendix 2 Lines tabular section, which reflects and makes it possible to track the lines of all created Adjustment Calculations for VAT Invoices.

Filling in the Index Field in Appendix 2 to a Sales VAT Invoice

To ensure that the lines of Appendix 2 correspond correctly to the lines of the VAT Invoice, pay attention to the Index field in the Appendix 2 and VAT Invoice lines. The index of an Appendix 2 line must correspond to the index of the VAT Invoice line being adjusted. When creating Appendix 2 to a VAT Invoice, the Index field in the lines is always set to "0". The Index field is recalculated upon release or posting of Appendix 2 only if the Index field in the Appendix 2 lines contains zero values. After Appendix 2 is released/posted, the Index field is automatically recalculated and populated with the appropriate sequential number:

for lines that adjust existing VAT Invoice lines, the Index field is populated with the number of the corresponding line from the original VAT Invoice;
for new lines added as part of Appendix 2, sequential numbering is used, continuing the numbering of the VAT Invoice lines.

If the Index value was entered manually, the system retains this value when releasing or posting Appendix 2 and does not overwrite it. If the posting of Appendix 2 is cancelled, the Index field is cleared and reset to "0".

When Appendix 2 is posted again, the Index field is populated with the next available indices based on previously posted Appendix 2 documents where the values of the Original VAT Invoice No. and Original VAT Invoice Line No. fields match. The adjustment is performed as follows:

by index — the corresponding line of the previous Appendix 2 is adjusted;
by amount and quantity — the original VAT Invoice line based on which the current Appendix 2 was created is adjusted.

Additionally, the Adjustment Group Number (Group Index) field is used in the Appendix 2 lines. It allows related adjustment lines to be grouped together (for example, a reversal line and an addition line). The Group Index value is set to 0 by default and is generated automatically after Appendix 2 is released/posted, ensuring that changes within a single adjustment are grouped correctly. If the Adjustment Group Number (Group Index) field is populated manually, its value is always recalculated when Appendix 2 is released or posted.

For analysis and control of Appendix 2 documents, VAT Invoices contain the Appendix 2 Lines subpage, which displays and allows users to track the lines of all Appendix 2 documents created for the VAT Invoice.

Manual creation of Adjustment Calculation

To create an Adjustment Calculation for a VAT invoice manually:

Select the icon, enter Sales VAT Invoice List, and then choose the related link.
In the window with the list of created VAT Invoices, select New.
Select Appendix 2 document type.
On the Sale tab, fill out the Account Type and Account No. fields.
In the Correction tab, select Applied Invoice No.
Click Get lines from sales documents... to get lines of the Adjustment Calculation. Select one of the options: Duplicate VAT Invoice adjustment lines or VAT Invoice lines only for reversal.
In the lines of adjustment calculation, select a value for the Adjustment Reason Code field.
Click Post to post the Adjustment Calculation.

Creation of Adjustment Calculation from a Posted Sales Tax Invoice

To create an adjustment calculation for a previously posted tax invoice, follow these steps:

Select the icon, enter Posted Sales VAT Invoice List, and then choose the related link..
Find and open the VAT invoice for which you need to create an adjustment calculation.
On the toolbar, click Create Appendix.
Choose the Adjustment Reason Code and Line type creation – either Duplicate reversing VAT lines or Only VAT lines for reverse.
In the created document, make the necessary edits to the lines and check the tabs in the header (all information in the header will be populated based on the VAT invoice from which it was created).
Click Post to post the Adjustment Calculation.

Creating of Adjustment Calculation for a Sales VAT Invoice Below Cost

An adjustment calculation for sales VAT invoice sold below cost can be created either manually or based on a posted tax invoice. To do this, follow the steps described above.

Additionally, you need to fill in the fields on the Source Document tab:

In the Source Type field, select the value Sales Below Cost;
In the VAT Business Posting Group field, select the corresponding group that matches the chosen VAT Business Group for Sales below cost, indicated on the Tax Setup page in the Sales tab. Thus, when exporting the adjustment calculation for a sales VAT invoice below cost in XML format, the text specified in the Sales Below Cost Text field on the Tax Setup page will be added to the item description.

Creation of an Adjustment Calculation for a Sales VAT Invoice upon Packaging Return

The Packaging Return flag is available on the Sales Credit Memo and determines whether returnable packaging is being returned under this document. When generating VAT invoices (either automatically by period or manually) from a posted Sales Credit Memo, an Adjustment Calculation is not created if the Packaging Return field is set to Yes. Enabling this option prevents the creation of an Adjustment Calculation with a zero amount when returning returnable packaging.