Adjustments on a bill
On a sales bill, everything that changes the total apart from the products themselves is a sales adjustment (in the system, a bill term): VAT, a discount, a delivery charge, a rounding line. The invoice screen shows them as Adjustment (on the whole bill) and Product adjustment (on one line).
Each adjustment is set up once, on the Sales adjustment screen (see Set up VAT, discounts and other sales adjustments):
| Field | What it decides |
|---|---|
| Name | What the bill and reports show |
| Basis | Value based (a percentage of the amount) or Quantity based (a rate per unit) |
| Sign | Increment (+) adds to the bill, Decrement (-) takes from it |
| Category | General, Additional, Free or Round Off |
| Ledger | Where the amount is booked |
| Rate and formula | The percentage or the rate, and a formula where one is needed |
| Order | The order the adjustments are applied in |
| Product wise | Worked out on each line instead of on the whole bill |
| VAT adjustment | Marks the adjustment that is VAT; there is also a Luxury tax term mark |
How the total is built
Adjustments are applied one after another in their Order, each on the running total so far.
Products 10,000
Discount 10% -1,000 -> 9,000
VAT 13% +1,170 -> 10,170 (if the discount comes before VAT)- A discount whose order comes before the VAT adjustment lowers the amount VAT is charged on. One that comes after it does not.
- VAT applies only to products marked VAT applicable. The VAT base is the total of those lines, run through the same discounts.
- When Is VAT mode changeable? is on in Configuration, a product line can be entered VAT inclusive in rate or VAT exclusive in rate.
Which adjustments the screens use
Configuration names three adjustments the sales screens rely on: the VAT adjustment, the Sales product discount adjustment and the Sales invoice discount adjustment.