You might notice VAT being added to an invoice even though the provision is set to be VAT exempt.
What’s causing this
Between the time you entered the previous invoice (e.g., 11 July 2024) and the current one (e.g., 15 August 2024), someone accidentally changed the provision to be VATable. As a result, the invoice lines stored in the PAYMENTS table were created with VAT amounts.
Before the next invoice was entered (e.g., 13 September 2024), someone corrected the mistake and set the provision back to VAT Exempt. That invoice then generated correctly without VAT.
However, rejecting the invoice doesn’t delete those VAT-inclusive records from the database it just removes them from the invoice. So, when you re-enter that invoice period, the system still pulls in those records with VAT.
You can remove the VAT without changing the service cost by creating VAT-only variations:
Add a variation for the VAT amount for each week shown on the invoice.
Process these variations so the totals for each week add up to zero.
Test this first in a non-production environment, as interfaces can differ. Varying all weeks at once (for example, only in the last week) might cause unexpected results.
Once you apply the variations, the invoice should process correctly now that the provision is exempt from VAT.