Implementing GTM > Implementing Special Taxes > Upper Limits and Invoice Splitting
  
Upper Limits and Invoice Splitting
Multiple Golden Tax invoices can be associated with one QAD invoice. QAD invoices are split based on the invoice upper limit specified in Entity Create.
The invoice upper limit is an amount approved by the tax authorities in China for each company. Each invoice amount in that entity cannot exceed the upper limit. Therefore, when the amount of a QAD invoice exceeds the upper limit, it is automatically split into several Golden Tax invoices, each with an amount less than the upper limit.
The system uses the following rules to split a QAD invoice into several Golden Tax invoices.
• If an item’s unit price exceeds the upper limit, split the unit price and keep quantity unchanged.
• If an item’s unit price is less than the upper limit but the item’s total amount exceeds the upper limit, split the item’s quantity.
• When an invoice has multiple items, the first item is split, and then the second, and so on.
The following examples show for three sample scenarios how a QAD invoice is split into Golden Tax invoices. In all examples, the upper limit is $100,000.
Example 1: Item Price Exceeds Limit

QAD Invoice Example 1
 
Item
Unit Price
Quantity
Item 1
$120,000
1

Golden Tax Invoice 1
 
Item
Unit Price
Quantity
Item 1
$100,000
1

Golden Tax Invoice 2
 
Item
Unit Price
Quantity
Item 1
$20,000
1
Example 2: Item Total Amount Exceeds Limit

QAD Invoice Example 2
 
Item
Unit Price
Quantity
Item 1
$40,000
3

Golden Tax Invoice 1
 
Item
Unit Price
Quantity
Item 1
$40,000
2

Golden Tax Invoice 2
 
Item
Unit Price
Quantity
Item 1
$40,000
1
Example 3: Multiple Lines Exceed Limit

QAD Invoice Example 3
 
Item
Unit Price
Quantity
Item 1
$40,000
3
Item 2
$120,000
2

Golden Tax Invoice 1
 
Item
Unit Price
Quantity
Item 1
$40,000
2

Golden Tax Invoice 2
 
Item
Unit Price
Quantity
Item 1
$40,000
1
Item 2
$30,000
2

Golden Tax Invoice 3
 
Item
Unit Price
Quantity
Item 2
$50,000
2

Golden Tax Invoice 4
 
Item
Unit Price
Quantity
Item 2
$40,000
2