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Norwegian invoices with VAT in a foreign currency

This topic is relevant when a Norwegian supplier creates an invoice in a foreign currency, and send it to a Norwegian company.

The value added tax (VAT) calculated on the invoice must be paid in the foreign currency, but the VAT must be booked in Norwegian krone (NOK) in the General ledger (GL).

The advantage of booking the VAT in NOK is that the system automatically will calculate the correct balance(s) on:

  • The Accounts payable.

  • The foreign currency GL accounts.

  • The calculated VAT amount.

  • The VAT report.

If you choose to post a foreign currency to a VAT account, you will get a challenge through the VAT reconciliation. Because you pay the VAT in NOK, the system will never be able to settle the foreign currency amount on the VAT closing account. If you do choose to post a foreign currency to a VAT account, you have to create a manual posting in the GL in order to reconcile the account.

Register a norwegian supplier invoice with VAT in a foreign currency
  1. To open the Goods Reception (SSA) application, find Logistics in the RamBase menu and then Reception. Click Goods receptions to enter the SSA application.

  2. Find the Goods Reception (SSA) document related to the received invoice and press ENTER.

  3. Press F12 to open the action menu and choose the option Transport All Items.

  4. In the Supplier Document Transport Alternatives popup, select the option New Invoice.

  5. Compare the invoice received from the supplier and the Supplier Invoice from the system (SIN).

  6. If differences, make the necessary changes on the SIN. For example: Change the prices or add/remove items.

  7. Highlight a supplier invoice item and press ENTER.

  8. In the middle of the Supplier Invoice Item window, click the magnifier icon next to the AccNo field.

  9. In the Item Account Info popup, use the dropdown menu next to the VatCode field to set the VAT code to 00.

  10. Click on the OK button.

  11. Repeat the steps 9-12 for each item on the SIN.

  12. Add the VAT as an item. Use an article defined for this purpose. It is recommended to add information in the Text field.

  13. Enter the VAT amount in the Price field.

  14. In the middle of the Supplier Invoice Item window, click the magnifier icon next to the AccNo field.

  15. In the Item Account Info popup, use the dropdown menu next to the VatCode field to set the VAT code to 00.

  16. In the AccNo field, select a GL exchange account (8XXX).

  17. Click on the OK button.

  18. Press Esc to return to the SIN main document.

  19. Press F12 and choose the option Register Supplier Invoice. The invoice is now ready to be paid.

Transfer VAT from a GL exchange account to a GL VAT account
  1. To open the Pay Management (PAM) application, find Finance in the RamBase menu and then Cash management. Click Inbound payments to enter the PAM application.

  2. Click on the Payments folder.

  3. In the Pay Management window, click the + icon to create a new Payment document (PAY).

  4. In the Select Bank popup, select the clearing bank.

  5. Click OK.

  6. In the Pay Document window, click on the drop-down menu next to the field PayType.

  7. Select the option Mix.

  8. Click the + icon to add a new Pay item.

  9. In the field AccountTrans Amount, enter the VAT amount in the local currency. Start with a minus sign (-) to get a negative value.

  10. In the Select Account popup, select the account for incoming VAT. This will be added as an item line on the Pay Item.

  11. In the field AccountTrans Amount, enter the VAT amount in the local currency.

  12. In the Select Account popup, use the drop-down menu next to the Cur field to select the correct foreign currency.

  13. If necessary, make corrections in the foreign currency amount field.

  14. Select the exchange account (8xxx). This will be added as an item line on the Pay Item.

  15. If there is a deviation between the amounts on the two item lines, enter the deviation amount in the AccountTrans field. Use (-) if it is a negative value.

  16. In the Select Account popup, select the Agio account. This will be added as an item line on the Pay Item.

  17. Press Esc to return to the main PAY document.

  18. Press F12 to open the action menu and choose the option Register Payment. The amount is now transferred and the General Ledger is updated.