WHAT ARE VAT ARTICLES?

VAT articles are mainly used to determine the correct VAT on prices, and depending on your back office systems and internal reporting routines, what category or resource code a price belongs to. An article must have a name or code, description, VAT percentage and VAT percentage fee (VAT on the price margin - difference between in and out price). The name/code will be displayed on invoices and the description is only for internal use to select the correct article.



WHY DO I HAVE TO SELECT AN ARTICLE TO ADD A PRICE?

For Qondor to present the correct price, the system must know what VAT percentage a price has. If you don't know the VAT specification of the price, ask internally or the supplier you received the price from.

Select the right article!

Qondor presents and uses prices you add, several places in the system. If using the incorrect article, the price will be displayed incorrectly on the customer offer, all invoices, and on form products and fees too. The consequences will be that the customer or booker will see and be invoiced an incorrect price. 

❗ For form products, it is especially crucial that you select the correct article before the form goes live for booking, as transactions are saved at the time of booking and not at the time of payment.

What happens if I change article on a price?

On offers, you can change the article before invoicing, but be aware that your customer may have accepted a different price that what will be invoiced.

On forms, you need to have the correct articles before going live with bookings. If you have the incorrect article, only bookings created after you change to the correct article, will have the correct price. Bookings already created must be corrected manually with for example additional payment price lines.



ROUNDING ISSUES WITH PRICES INCLUDING VAT

In Qondor you can input prices including or excluding VAT, and Qondor will automatically calculate the corresponding price. It is the excluding VAT price that is used as a base rate for calculation on invoices and offers, so when rounding from an including VAT price you might experience rounding issues. Qondor will alert you if this occurs. See the below example with a selling price of €1512 and a VAT rate of 6%, where the out price including VAT is calculated as €1512.01.
 


The solution to this problem is to adjust the out price to €1512.01 and add a second line where you compensate for the error (in this case -0.01), thus making the product price nice and round (€1512).



USE SEVERAL ARTICLES OR THE SAME ARTICLE ON A PRICE

As countries have different VAT rules, Qondor supports unlimited articles per price line. For example, you can present the price of a hotel room with one article representing the accommodation, and another representing the food & beverage, for example breakfast. Qondor will display the total price on the customer offer or registration form, but will specify the VAT on the invoice.

You can also use the same article for different prices on a product if needed.



ADMINISTER YOUR ARTICLE LIST

A superuser can contact support@qondor.com and we will adjust your article list as needed. You must include the following information for new articles:

  • Article number/resource code (unique number Qondor needs to keep the article, displayed on invoices)
  • Article description (used internally when selecting articles)
  • Article VAT percentage (VAT on article)
  • Article VAT percentage fee (VAT on the price margin - difference between in and out price)


💡 Good to know regarding deactivating articles in use

  • A deactivated article will remain on all products where it is already in use. It can not be selected on other new or existing products. When saving a product with a deactivated article you will receive a warning message.
  • Consequences for customer offer invoicing: The deactivated article is still used on invoices. If the product is saved with a new article, the new article is used.
  • Consequences for customer form invoicing and booking payments: Prices/transactions are saved when products are booked, so bookings made before an article is deactivated will still be invoiced with the deactivated article. Bookings made after an article is deactivated will get the deactivated article unless the product is saved with a new article.
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