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Taxation and Currency

  • Updated

In the Settings > Accounting > Tax and Currency > Tax/Currency menu, you carry out settings for location-based tax rates and currencies. Additionally, you define the chart of accounts for financial accounting exports in this menu.

Important

We recommend consulting a qualified expert on taxation and financial accounting topics to avoid incorrect settings in Xentral.

Setting tax rates

Note

If you want to store tax rates on a project basis, for example because you want to add different tax rates for B2B transactions or foreign taxation, you carry out these settings in the Settings > Accounting > Accounting settings per project menu.

Proceed as follows to set the tax rates in Xentral. These tax rates are used as the default for your accounting and all sales orders.

  1. Open the Settings > Accounting > Tax and Currency > Tax/Currency menu.

  2. Carry out the desired settings in the Tax rates area. Further information on the individual settings is available in the following table.

  3. Click on Save.

Field name

Description

Tax rate (normal)

Enter the standard tax rate applicable in the country where your company is located.

Tax rate (reduced)

If a reduced tax rate exists for the country where your company is located, enter it in this field.

Forwarding of receipts

Determine which tax rates should be applied to receipts when receipts have already been created for a sales order in Xentral. The following options are available:

  • Tax from previous receipt (recommended): Receipts always use the tax rate that was applied in the previously created receipts for the same sales order.

  • Tax usually from settings: When receipts are created, the tax rates from the product master data or the project settings are applied, even if these settings have changed in the meantime.

    Warning

    Using this option may result in different tax rates being applied within the same sales order.

Small business owner

Enable this option if the small business regulation under § 19 of the German VAT Act (UStG) applies to you. VAT is then no longer shown on your invoices.

Tax-free domestic

Enable this option if the tax rate normally used from the Tax rate (normal) field is to be changed to 0% on the invoice and thus waived.

Important

You may only use this setting if your company explicitly qualifies for the so-called zero tax rate. Currently, this is only permitted in Germany in exceptional cases and for trading with certain products in the area of photovoltaics and solar technology. You can find more information on this topic here at the Federal Ministry of Finance.

Hide control column

Enable this option to hide the Tax column, and thus the tax rate information, on invoice, offer, sales order confirmation, and credit note receipts.

Note

This setting only takes effect if all receipt line items have the same tax rate.

Always net invoices

Enable this option to always display net prices on invoice, offer, sales order confirmation, and credit note receipts. If you leave this option and the following option, Always gross invoices, disabled, Xentral generates receipts according to the following default logic:

  • If the customer address type is Company, net prices are automatically displayed on the receipts mentioned.

  • If the customer address type is Ms. or Mr., gross prices are automatically displayed on the receipts mentioned.

Note

You can find the salutation of an address as a selection field in the address master data as well as in every receipt linked to this address.

Always gross invoices

Enable this option to always display gross prices on invoice, offer, sales order confirmation, and credit note receipts.

Receipts with 4 decimal places

Enable this option to display 4 decimal places instead of 2 on receipts.

Standard payment method for customers

Select the payment method your customers use by default from the dropdown menu. Note that default payment methods can also be set individually per address under Sell > Contacts > [Open contact] > Tab: Payment conditions/Taxation > Payment method. In this case, the setting made here becomes ineffective.

Default payment method for supplier

Select the payment method you use by default to settle your liabilities with suppliers from the dropdown menu. Note that this default payment method can also be set per supplier under Sell > Contacts > [Open contact] > Tab: Payment conditions/Taxation > Payment method. In this case, the setting made here becomes ineffective.

Default shipping method

Select the shipping method you normally use to send your deliveries from the dropdown menu.

Carrying out currency settings

Note

Note that you manage the exchange rates of your currencies in the Settings > Accounting > Tax and Currency > Currencies menu.

Additionally, the settings described here no longer apply as soon as you carry out specific settings for a project in the Settings > Accounting > Accounting settings per project menu.

Proceed as follows to carry out the system-wide settings for the default currency used and the desired margin in Xentral.

  1. Open the Settings > Accounting > Tax and Currency > Tax/Currency menu.

  2. Carry out the desired settings in the Currency area. Further information on the individual settings is available in the following table.

  3. Click on Save.

Field name

Description

Standard currency

Select the default currency used by Xentral. This default currency is also the base for all other currencies in which you may sell your products.

Load currency rate

Activate this option to always automatically use the current exchange rate from the Settings > Accounting > Tax and Currency > Currencies menu when continuing receipts. This ensures that amounts are always calculated using the most up-to-date exchange rates throughout the entire order process and are listed accordingly on the receipts.

Exchange rate from invoice for credit/Stornorechnung

Activate this option to retain the exchange rate applied when the invoice was created when you create credit notes or cancellation invoices. This helps you avoid discrepancies caused by fluctuating exchange rates.

Standard margin in %

Enter the desired default margin in %. Xentral then uses the following calculation: Purchase price + margin = recommended sales price.

Creating your own tax rates

In the Settings > Accounting > Tax and Currency > Tax rates menu, you create additional, individual tax rates. You select these tax rates in the cash book or assign them to individual products for special cases, for example a special tax rate of 13%. This menu is especially relevant if you work with special tax rates or with taxes from abroad.

Proceed as follows to create your own tax rates.

  1. Open the Settings > Accounting > Tax and Currency > Tax rates menu.

  2. Click on Add tax rate.

  3. Enter the desired data. Further information on the individual fields is available in the following table.

  4. Click on Save.

Field name

Description

Enter tax rate as a number

Enter the desired tax rate as a number, for example "13" for a tax rate of 13%.

Name, e.g. "special rule"

Assign a designation for the tax rate, for example "Tax AT normal".

Type

Select the type of tax rate. The options manual, reduced, and normal are available.

Country

Select the country for which the tax rate should apply.

Project

Select the project whose sales orders the tax rate should be assigned to. If you do not make a selection here, the tax rate applies to all sales orders in Xentral, regardless of the project.

Valid from

Enter the date from which the tax rate is valid.

Date of expiry

Enter the date until which the tax rate is valid.

Active

Enable this option so that the tax rate can be selected system-wide in the relevant areas. Disable the option for tax rates you no longer need.

Set as standard tax rate

Enable this option to set the tax rate as the default tax rate for all sales orders in Xentral.

Using tax rates in products and the cash book

In the product master data under Sell > Products > [Open product] > Tab: Details > Sub-tab: Financial accounting, you select an individual tax rate. Note that for the accounting export, you must store the required accounts in the respective product – either directly in the product or across the board in the associated product category, provided all products in this category use the same tax rate. If you do not store deviating accounts, Xentral automatically uses the default tax rate for the export, for example Domestic 19% in Germany.

In the Cash book module, you select an individual tax rate for each entry. Make sure that the account assignment matches the respective tax rate, for example directly in the cash book in the Account field or when posting incoming payments. The taxation is then displayed in the table view and in the journal entry of the cash book. For the export to your accounting software, you only need to specify the correct account from the chart of accounts, for example when posting bank statements.

Defining the chart of accounts for financial accounting exports

In the Financial accounting export chart of accounts area of the Settings > Accounting > Tax and Currency > Tax/Currency menu, you define the revenue and expense accounts system-wide. You enter the revenue accounts in the Revenues fields and the expense accounts under Expenses.

Important

You can define the chart of accounts in various places in Xentral:

  • In the master data of individual products (Details > Financial accounting)

  • In the settings of individual product categories (Product categories module)

  • In the menu described here: Settings > Accounting > Tax and Currency > Tax/Currency

Xentral takes the settings into account in the order listed above. This means that accounts stored directly in the product are given priority. If no accounts are stored there, accounts from the product category are taken into account. If no deviating accounts are stored either in the product or in the product category, Xentral ultimately falls back on the accounts defined in the Settings > Accounting > Tax and Currency > Tax/Currency menu.

Chart of accounts in detail

The following table shows an example overview of the accounts that you can store in the Financial accounting export chart of accounts area of the Settings > Accounting > Tax and Currency > Tax/Currency menu.

tax_rates.png

Account

Description

Domestic (normal)

Nominal account for domestic sales with the normal tax rate (e.g. 19%).

Domestic (reduced)

Nominal account for domestic sales with the reduced tax rate (e.g. 7%).

Domestic (tax-free)

Nominal account for tax-free domestic sales (e.g. under § 4 UStG).

Intra-community EU

Nominal account for intra-community deliveries and acquisitions within the EU.

EU (normal)

Nominal account for EU sales with the normal tax rate.

EU (reduced)

Nominal account for EU sales with the reduced tax rate.

Export

Nominal account for exports to third countries without domestic VAT.

Export settings for incoming payments

If you carry out a financial accounting export under Accounting > Financial accounting export > Accounts and the incoming payments contain imported payments that have not yet been assigned to an invoice, Xentral uses the following settings for the Contra account column:

Field name

Description

Standard account

Contra account for imported payments in incoming payments that have not yet been assigned to an invoice, for example 1370 for the bank account in SKR04.

Standard account expenses

Default expense account for unassigned outgoing payments.

Adjustment of customer number

Offset for the customer number in the financial accounting export. This allows you to align the customer numbers from Xentral with the debtor account numbers in your accounting software, for example DATEV.

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