Invoice message

Version: Process description SALES005 v1.0

Invoice data is meant to indicate the information with which the supplier and customer can come to an agreement on the price. Based on the delivered goods and the commercial agreements, the amount to be paid is determined by the customer and supplier. Within the construction and installation sector, the scenarios normal invoice and correction invoice are found.

1 Exchange invoice data

In this section, first, the scenarios defined are described: ‘Normal invoice’ and ‘Correction invoice’. After this, the playing rules for the two scenarios are described.

Scenario: normal invoice

This scenario describes the most common method:

Figure 1 – Description normal Invoice

In this scenario, the supplier forwards the invoice to the customer; he/she processes the invoice in the administration, and then indicates it as ‘to be paid’. To employ the scenario normal invoice, the transaction ‘invoice’ shall be executed. With the invoice message, the supplier indicates which amount of money he/she expects the customer to pay for the delivered goods or services.

Scenario: correction invoice

This scenario commences once a customer or supplier has observed a mistake in the invoice. With the correction invoice, the supplier indicates the corrections as regard to the previous (correction) invoice.

Figure 2 - Description correction Invoice

• If the customer or supplier had observed a mistake, he/she contacts the trading partner with the request to forward a correction invoice;
• The supplier drafts the correction invoice and forwards it to the customer. This correction invoice shall refer to the original invoice. A correction invoice can be both in and out overdrafts;
• The customer receives the correction invoice and processes it in his/her administration;
• Then, the customer shall indicate the invoice as ‘to be paid’.

2 Playing rules for a normal invoice

For the normal invoice, the following rules are in play:

• An invoice can be forwarded by the supplier, as well as the customer (also known as self-billing);
• An invoice is always assigned an unique invoice number;
• The invoice type is ‘380’;
• The parties in the messages are the same (e.g. the customer in the order message is the customer in the invoice message);
• One invoice refers to max. one despatch advice message. If this is not possible due to there being no despatch advice messages employed, a reference is made (in the headings) to the order or order response;
• There is a 1:1 relation between the despatch advice message and the invoice. in the invoice, the (unique) despatch advice message number should be mentioned;
• A so-called ‘null order’ can never lead to a despatch advice message, and thus no invoice;
• In case of a free delivery of goods, a null price may be invoiced. If the price is €0,00, the net line amount can be €0,00 as well. This might lead to the total net line amount and the invoice amount being €0,00 in the invoice as well. As receiver of the message, this is something to take into account. A null price might occur on both the normal, and correction invoice;
• The normal invoice can be used to forward a credit invoice as well, in which case all rules are provided with a minus-sign;
• Both when using a normal and credit invoice, the field <InvoiceNumberToBeCorrected> should be used to refer to a previous, already paid invoice. Only if there is no previous invoice, does this information does not have to be filled out, though attention should be paid to another message that can serve as reference to enable the matching within a system. This situation might occur, for example, when returning packaging trade items.

3 Playing rules for the correction invoice

For correction invoices the following rules are in play:

• A correction invoice is always provided with its own unique identification number;
• The invoice type is ‘384’;
• One correction invoice always refers to one to-be-corrected invoice. It is possible to perform a ‘correction on a correction’, in which case the second correction invoice shall refer to the first correction invoice;
• The original invoice is not yet paid;
• First, the incorrect invoice-lines are counter booked. An invoice line is counter booked by incorporating a negative ordered amount, e.g.: -5 trade items. This shall ensue in a negative invoice-line amount. After this, the new / revised invoice-line is incorporated in the same correction invoice. If the customer has received an invoice for the five trade items, but has received no trade items and has no desire to receive these trade items, only a credit line will remain;
• In a correction invoice, one is only to correct the incorrect invoice-lines;
• One is not supposed to book against the entire invoice, and then resubmit the correct invoice. To credit the complete invoice and establish a new invoice, the normal invoice is to be used and not the correction invoice.

4 Supplementing playing rules

4.1 Composite trade item

A composite trade item is an trade item which exists out of several trade item components. It might be the case that per component, different VAT rates are applicable.

Example 1: trade journal with cd-disc A trade journal with cd-disc is a composite trade item with two VAT rates. The trade item has a different VAT rate as compared to the cd-disc. At line-level, you are expected to provide both the GTIN of the composite trade item, and the number of delivered units, the invoice units and the price of both trade items and the VAT percentage and the amount for which this percentage applies (VAT base amount).

Example 2: display The display is usually a trade unit comprised out of several consumer units with different VAT rates. With every VAT rate is the amount for which this percentage applies indicated (base amount). So, a trade unit comprised out of several consumer units with different VAT rates cannot be settled as different consumer units.

4.2 Allowances and charges

Within the trade, there are many types of commercial allowances and charges, which are subject to considerable movement. It has been decided to provide no separate indications for the various types of commercial allowances and charges, but to provide a total of other allowances/charges. To prevent mistakes in the invoices, you and your trading partner are expected to process the same prices, allowances and other conditions in your systems. As such, you are both enabled to draft a correct electronic invoice. The following general assumptions are relevant regarding allowances and charges:

Allowances

Allowances are understood to be, among others, payment allowances, bonuses on the turnover and/or sales and logistic allowances. The following playing rule applies: Allowances are assigned to separate trade items. This is not possible for a limited amount of specified allowances, which can be passed down in the headings. You are expected to communicate this with your trading partner. Supplementing optional information fields can be used to handle the payment discount in a correct manner:

• Percentage payment discount: the discount percentage received by the customer if he/she pays the invoice within the agreed-upon period.
• Number of days after invoice date: used to indicate up until how many days after the invoice date the payment discount is still relevant;
• Amount payment discount: the total amount payment discount for the invoice. The amount that is subtracted from the total invoice amount if the payment proceeds according to the agreed-upon payment discount terms.

Charges

Charges are understood to be, among others, administration costs, shipping costs, excess surcharge, etc. The following playing rule applies: Charges are to be assigned to separate invoice lines. Charges that cannot be assigned to a invoice line, are to be communicated at the invoice level. You are expected to communicate this with your trading partner.

4.3 Payment discount

Payment discount is used to indicate which percentage discount is applicable for the relevant base amount (excluding VAT), if the payment is made within a particular time period. It is possible for several periods to set different percentages:

• Payment within 10 days, 2% payment discount;
• Payment within 20 days, 1.5% payment discount;
• Payment within 30 days, 1% payment discount.

Within the message, the following calculation rules are applicable when filling out the information fields:

Calculation rule 1:

TotalAmountSubjectToPaymentDiscount = TotalNetlineAmount + TotalAmountInvoiceChargeAllowance

Calculation rule 2:

TotalInvoiceAmount = TotalVATAmount + TotalNetlineAmount + TotalAmountInvoiceChargeAllowance

4.4 Credit restriction surcharge

Credit restriction surcharge is used to indicate which surcharge percentage is applicable for the relevant base amount (including VAT), if payment is made exceeding the particular time period. It is possible for various time periods to set different percentages:

• Payment after 10 days, 2% credit restriction surcharge;
• Payment after 20 days, 1.5% credit restriction surcharge;
• Payment after 30 days, 1% credit restriction surcharge.

Within the message, the following calculation rules are applicable when filling out the information fields:

Calculation rule 1:

TotalAmountSubjectToPaymentDiscount = TotalVATAmount + TotalNetlineAmount + TotalAmountInvoiceChargeAllowance

Calculation rule 2:

TotalInvoiceAmount = (TotalAmountSubjectToPaymentDiscount × PercentageCreditRestrictionSurcharge / 100) + TotalAmountSubjectToPaymentDiscount

It is common for the parties to have agreed upon the payment discharge or credit restriction surcharge at the relation level already; meaning that it does not need to be mentioned in every invoice separately. To ensure clarity regarding the tax payment, credit restriction charges and payment allowances cannot be used within the same invoice.

Taking into consideration an efficient data exchange, there is no reason for the final payment of the invoice to take so much time, that credit restriction charges and payment allowances are necessary. Ketenstandaard therefore recommends to omit the credit restriction charges and payment allowances, if it is decided to make use of the SALES Standard.

4.5 VAT reversed charges and VAT information

The reversed charges mean that the levying of VAT is diverted from the subcontractor or lender to the contractor or hirer. No money is passed from the subcontractor of lender to the tax authorities, as this happens directly via the contractor or hirer. As such, the latter parties control the factual payments, as they are deemed responsible essentially. The tax authorities have enacted several conditions for the application of the VAT reversed charges, which are, naturally, adhered to within the SALES Standard when making use of the VAT reverse charge.

Employment of the VAT reverse charge

When in the headings of the invoice it is made known that it concerns the VAT-overturn (Indication VAT reversed charges: J), this is indicated at line-level as well (code AE). Next to this, the percentages are to be included for additional information, the invoice’s total amount as such does not contain any VAT. Processing parties determine, based on this information, to what extent the VAT is to be overturned.

4.6 G-account

A G-account indicates a blocked account. This account is used for the outsourcing of certain activities, and not for every random payment. It is only used to make payments to the tax authorities, or other subcontractor. The only amounts that can be transferred are income taxes (with or without VAT). The G-account is used by lenders and hirers of personnel, contractors and subcontractors.

Goal of the G-account

The ultimate goal of the G-account is to offer protection in questions of liability by the tax authorities related to income taxation, or to protect an individual from default payments to the tax authorities. Usually, the party for whom the services are performed is responsible for the payment of the income tax. Three exceptions can be made, in which another party is responsible (as well) for the correct payment of the income taxation. Other than the employer, three parties can be found liable for the non-payment of income taxes to others:

• Hirers of personnel;
• Contractors within a sector;
• Directors of partnerships.

For the first two parties, a regulation is in place that is meant to protect them from deposits by other parties. This protection is offered through the payment of a part of the contract price on the G-account. This is effectively in the possession of the lender and/or subcontractor.

The subcontractor or the lender of personnel is the primary person responsible to ensure the correct payment of the income taxation of his/her personnel; he/she is, essentially, the person employing these people. If the subcontractor or lender for whatever reason does not pay the income taxation, the contractor and/or hirer, as the client, is found liable by the tax authorities for the non-payment. The G-account helps prevent such liability. The contractor or hirer can initiate this by depositing part of the contract price – as owed to the subcontractor or lender – on the G-account of the subcontractor or lender. The part deposited on the G-account is thus equal to the amount that the subcontractor or lender, in the context of the assignment, is expected to pay as income taxation. From the G-account, the subcontractor or lender can then transfer the money to the tax authorities to pay for the income taxes. One exception is the case where the subcontractor has hired a third party. The subcontractor is then considered to be a contractor as well, and can transfer part of the amount from his G-account to the G-account of the third party (sub-sub-contractor).

4.7 Invoice guidelines: characters, decimals and rounding

The EDI contains guidelines for the formats of information fields, rounding and the use of various characters. In this paragraph, the correct use is described.

• The difference between debit and credit is indicated with the character of + or -;
• Numbers can be negative in a correction or normal invoice in which goods to be returned are credited;
• You are expected to always round numbers to two decimals:
  • 0,9701 as 0,97;
  • 0,9749 as 0,97;
  • 0,9750 as 0,98.
• Negative numbers are ‘administratively’ rounded to two decimals:
  • -1,124 as -1,12;
  • -1,125 as -1,13.

Administratively rounding has the advantage that with a reverse booking (with correction invoices) no differences shall occur. It is expected that numbers are rounded in every calculation. Thus:

• The (gross margin) line amount (calculated based upon amount*price) is rounded to two decimals;
• Allowances and charges are added with the (gross margin) line amount. Allowances and charges are amounts and thus contain max. two signs after the comma;
• The ground amounts (two positions after the comma) for a particular VAT percentage are added to the VAT subtotals (two positions after the comma);
• The VAT amount is calculated over the VAT subtotal. This amount has two positions after the comma.

4.8 Calculation rules

There are several calculation rules to keep in mind when applying the invoice message. Usually, these calculation rules shall be checked by the software used by the receiving side. Not suffice the calculation rules means that the relevant XML-messages are rejected. The following calculation rules apply to various types of invoices:

Table 1 - Calculation rules invoice

No.		Rule
1		Amount of invoice units = delivered amount (if unit is price-based = ordering unit)
2		Net line amount = (amount of invoice units * price/amount price-based) – allowances + charges
3		Total invoice allowances/charges = total of all invoice allowances/charges
4		Total net line amount = total of all net line amounts
5		Per VAT rate / percentage:
		Sum of all VAT ground bases at line-level
		Sum of all line-allowances/charges
	+	Sum of all invoice allowances/charges
	=	VAT-base subtotal
6		VAT amount subtotal = VAT-base subtotal * VAT-percentage subtotal
7		Total VAT amount = sum of all VAT amounts subtotal
8		VAT base subtotal = total net line-amount + total invoice allowances/charges
9		Total invoice amount = total net line amount + total invoice allowances/charges + total VAT amount

In the model found below, the above-mentioned calculation rules are included. The number of the calculation rule used can be found in the right column of the table. Calculation rule 1 has been indicated in the table, but the gross margin line-amount is not mentioned in the invoice message. This serves solely as an intermediate step for the calculation of other data. Calculation rule 8 is a square count, and thus not included in the schedule.

Table 2 - Example calculation rules invoice

Invoicelines	No.	Price	Calculate net line	Calculate net line total	VAT low	VAT high	VAT 0%	VAT free	Calculate VAT total	Calculate Invoice total
Gross	10	5,-	50,-			50,-
Net line amount 1			50,-	50,-
Bruto	7	20,-	140,-			140,-
Line allowance			-70,-		-70,-
Line charge			50,-					50,-
Net line amount 2			120,-	120,-
Gross	125	10,-	1250,-			1250,-
Allowance			-50,-			-50,-
Net line amount 3			1200,-	1200,-		1200,-
Gross	24	2,-	60,-			60,-
Line charge			15,-					15,-
Net line amount 4			75,-	75,-
Total net amount				1445,-						1445,00
Invoice allowances and charges
Invoice allowance			-50,-			-50,-
Total invoice allowance			-50,-							-50,00
VAT totals
VAT base amount					-70,00	1400,00	0,00	65,00
VAT subtotal 6%					-4,20				-4,20
VAT subtotal 21%						294,00			294,00
Total VAT amount										289,80
Total invoice amount										1684,80

4.9 Forwarding of an invoice from a company with multiple establishments

Within the invoice message, a distinction is made between the buyer/supplier and the invoice/invoicer. With a shipment from an establishment, the element supplier can be filled out with the address information of this particular establishment, the element invoicer shall then contain the data of the holding.

Within the standard, it has been agreed that, if both the supplier and the invoicer are filled out, the latter is leading within the administration. One might choose to fill out only the supplier, which is then, of course, leading. The account formation, Chamber of Commerce numbers and AVT numbers, etc. within every structure are connected with the entity within which this had been incorporated.