For foreign currency invoices that are line-item based, the calculation of base amount * VAT in the foreign currency is performed on each individual line item of the document, followed by conversion using the exchange rate.
At the same time, rounding to two decimal places takes place.
The individual line items of the document in the foreign currency are summed, and the individual line items converted to CZK are also summed separately.
This means that the total value in the foreign currency and the total value in CZK may not correspond from a VAT perspective — for example, the total value at the 21% rate does not match the calculation: total / 1.21 = VAT base.
Example
The individual line items of the document are converted using the exchange rate and rounded to 2 decimal places.
VAT [%] | Base [currency] | VAT [currency] | Total [currency] |
21.00 | 24.94 | 5.24 | 30.18 |
21.00 | 49.55 | 10.41 | 59.96 |
21.00 | 125.50 | 26.36 | 151.86 |
|
|
|
|
Total | 199.99 | 42.01 | 242 |
VAT [%] | Base [CZK] | VAT [CZK] | Total [CZK] |
21.00 | 602.55 | 126.60 | 729.15 |
21.00 | 1 197.12 | 251.51 | 1 448.63 |
21.00 | 3 032.08 | 636.86 | 3 668.94 |
|
|
|
|
Total | 4831.75 | 1014.97 | 5846.72 |
The example above illustrates that neither the value in the foreign currency nor the value in CZK matches the calculation:
total value / 1.21 = tax base for the 21% rate
242 EUR / 1.21 = 200 EUR, but the document shows a base value of 199.99 EUR
5,846.72 CZK / 1.21 = 4,832 CZK, but the document shows a base value of 4,831.75 CZK
This is the standard behavior of the Flexi application.
On the outgoing invoices side, if the total VAT base in the foreign currency does not match, you can use the VAT Correction feature.
The VAT Correction adjusts the VAT amount in the foreign currency so that base × 21% corresponds to the total value.
This depends on which prices are used as the starting point — prices excluding VAT or prices including VAT.
It does not correct the behavior of the base amounts in CZK.
On the incoming invoices side, where the amounts stated on the received invoice must be respected when entering the invoice, you can use the Tools options: Document Price Rounding and Domestic Currency Price Correction.
Using the Tool — Document Price Rounding — you can adjust the base amount and VAT in the foreign currency.
Using the Tool — Domestic Currency Price Correction — you can adjust the base amount and VAT in CZK.