QAD 2017 Enterprise Edition > User Guides > Global Tax Management > Implementing GTM > Implementing China Golden Tax > 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 limits specified in Entity Create.
Each invoice upper limit is an amount approved by the tax authorities in China for each company. There are generally different upper limits for special and ordinary Golden Tax invoices. For both types, each invoice amount in that entity cannot equal or exceed the relevant upper limit. Therefore, when the amount of a QAD invoice equals or exceeds the upper limit, it is automatically split into several Golden Tax invoices, each with an amount less than the upper limit. The upper limit does not include the tax amount.
The system uses the following rules to split a QAD invoice into several Golden Tax invoices.
• If an item’s unit price equals or exceeds the upper limit, split the unit price and keep the quantity unchanged.
• If an item’s unit price is less than the upper limit but the item’s total amount equals or 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.
Note: If the Golden Tax invoice amount is negative, the QAD invoice is not split. The original amount is kept when Golden Tax invoice data is generated.
When a sales order is in a foreign currency, splitting logic is done according to the base currency. The foreign currency amount is converted to base currency and the splitting logic is then applied.
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
$99,999
1

Golden Tax Invoice 2
 
Item
Unit Price
Quantity
Item 1
$20,001
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
$29,999
2

Golden Tax Invoice 3
 
Item
Unit Price
Quantity
Item 2
$49,999
2

Golden Tax Invoice 4
 
Item
Unit Price
Quantity
Item 2
$40,001
2