# Gross and net amounts

### Gross and net amounts
A posting's `amount` is VAT-inclusive on `SALE` and `REFUND` entries and VAT-exclusive on
`REVENUE_RECOGNITION` and `REVENUE_RECOGNITION_REVERSAL` entries. Both carry a `vat_rate`, so the rate alone
does not tell you which you are holding — the entry's `kind` does.
This matters most when the destination system splits VAT for you. Handing it a net recognition amount together
with a rate makes it strip VAT that was never in the amount, which understates revenue and leaves the
prepayment short by the difference. See `amount` and `vat_rate` on a posting for the full rules.
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