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Correcting Expense category on a billed expense item
I recently entered an expense for something (a train ticket) without noticing that the wrong category was selected. As a result, it was auto-coded as VATable, when in fact no VAT was charged.
When I noticed the error, the item had already been invoiced, and so was locked by FAC. (VAT period not locked, but locked because it was billed)
FAC allowed me to re-code the expense item back to 'Travel' but did not then let me change the VAT rate/calculation - it's stuck as 15%.
To clear the error from my VAT figures, I could, of course, revert the invoice to draft (to unlock the expense), change the VAT rate, then re-create the invoice again, and then re-send the invoice - a lot of hassle given all of the narrative editing and re-ordering I'd done on the invoice!
Question - Why was I allowed to change the expense coding between two categories with different VAT rates? (VAT period not locked?)
Secondly - Given that I was allowed to make this change - why did it NOT allow me to change the VAT rate calculation? It would have had no impact on the invoice total (as recharged expenses are VATable regardless of the original expense type)
When I noticed the error, the item had already been invoiced, and so was locked by FAC. (VAT period not locked, but locked because it was billed)
FAC allowed me to re-code the expense item back to 'Travel' but did not then let me change the VAT rate/calculation - it's stuck as 15%.
To clear the error from my VAT figures, I could, of course, revert the invoice to draft (to unlock the expense), change the VAT rate, then re-create the invoice again, and then re-send the invoice - a lot of hassle given all of the narrative editing and re-ordering I'd done on the invoice!
Question - Why was I allowed to change the expense coding between two categories with different VAT rates? (VAT period not locked?)
Secondly - Given that I was allowed to make this change - why did it NOT allow me to change the VAT rate calculation? It would have had no impact on the invoice total (as recharged expenses are VATable regardless of the original expense type)
I’m in a half-way house
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Inappropriate?Charles,
We're going to take a closer look into this -- looks like we need to do a little work to correct this behaviour. -
Inappropriate?Charles - our problem is this:
If you're registered for VAT we rebill the expense net of VAT and then you add your own VAT on top.
So if you change the VAT rate from 15% to 0% on a £115 rebilled expense, the net amount to rebill changes from £100 to £115.
When we lock things, we're trying to lock as little as possible - so that's why you could change the category since that makes not difference to any numbers elsewhere.
We do certainly need to make it easier to make corrections to incorrect VAT without having to resort to journal entries, I agree.
Does that make sense?
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