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Margin Scheme-Based Bookings

Accounting Support

In the context of reselling goods, margin schemes may apply, depending on your tax laws. In such cases, merchants pay taxes on the difference between the sale price and the purchase price of the goods. To support these scenarios, JustOn introduces the Margin Scheme recognition rule. Using this rule, JustOn generates separate booking details for the defined margin and for the position total minus the margin.

Info

The support for margin-based booking details is available as of JustOn 2.68.

The Margin Scheme recognition rule requires the following invoice line item fields in particular:

Field Description
Margin The net or gross margin for the invoice line item, depending on whether it is set as a gross position (Gross Line Item selected).
Margin Tax Rate The tax rate that applies to the margin. The value is taken from the Tax Rate field of the invoice line item.
GL Account The G/L account used for the revenue resulting net amount minus the margin. The value is taken from the G/L Account field of the Assignment Rules - G/L Account custom setting.
GL Account 2 The second G/L account, used for the revenue resulting from the margin amount. The value is taken from the G/L Account 2 field of the Assignment Rules - G/L Account custom setting.

JustOn applies the Margin Scheme recognition rule if the following conditions are met:

(1) The field Margin of the invoice line item is set.

(2) The field Recognition Rule of the invoice line item is set to Margin Scheme.

If the conditions are not met, JustOn uses the recognition rule Default.

Info

When applying a margin scheme, taxes apply to the margin amount only. For the original price, that is, the rest of the position total, the tax rate is set to 0.

Now if enabled and set up accordingly, JustOn creates three booking details when finalizing the invoice:

  • one revenue booking detail for the position total net minus the gross margin with the tax rate set to 0,
  • a second revenue booking detail for the margin net amount with the tax rate set to Margin Tax Rate (which is the original tax rate of the invoice line item),
  • a tax booking detail for the tax on the margin net amount.

    Make sure you have two G/L accounts set in GL Account and GL Account 2.

The invoice line item total is split according to the margin, as illustrated in the following examples.

Invoicing net line items and booking net values

Invoice line item:

Field Value
Pos. Total (net) 1000
Tax Rate 0%
Margin 252,10
Margin Tax Rate 19%

Applying the Margin Scheme tax rule, this produces the following booking details:

# Type Booking Account Calculation Amount Tax Rate
1 Revenue G/L Account 1000 - 252,10 * 1,19 700,00 0%
2 Revenue G/L Account 2 252,10 252,10 19%
3 Tax 252,10 * 0,19 47,90 19%
Invoicing gross line items and booking gross values

Gross Line Item on the invoice line item is set and the global setting Enable Accounting in Gross Values is enabled:

Field Value
Pos. Total (net) 1000
Tax Rate 0%
Margin 300
Margin Tax Rate 19%

Applying the Margin Scheme tax rule, this produces the following booking details:

# Type Booking Account Calculation Amount Tax Rate
1 Revenue G/L Account 1000 - 300 700,00 0%
2 Revenue G/L Account 2 300 300,00 19%

If you use gross values when creating bookkeeping data, the global setting Accounting Gross Taxes on First Month is ignored and the tax is always added to the margin booking detail.