Create a VAT document for an advance letter

Automatic VAT posting from an advance letter

If the Automatic Post VAT Document field in the header of the sales advance letter is set to Yes, the VAT document and VAT entry are created automatically when the advance letter is paid.

A VAT Payment entry is added to the advance history, showing the base amount and VAT amount.

To print the VAT document related to the advance invoice, follow these steps:

  1. Choose the Lightbulb icon icon, enter Sales Advance Letters, and then select the related link.
  2. In the list of sales advance letters, select the relevant advance.
  3. Choose the Advance Letter Entries action.
  4. Select the line where the Entry Type field contains VAT Payment, and then use the VAT Document function to print the advance VAT document with detailed VAT recapitulation.
  • If the advance letter has multiple VAT rates, a separate VAT Payment entry is created for each rate. If the advance is only partially paid, the VAT Payment entries are generated proportionally.
  • When the advance is fully paid, the Advance Status changes to To Use. If partially paid, the status remains To Pay. The advance letter can be used to a final invoice up to the paid amount, even if it isn't fully settled.
  • The VAT document is posted using the document number from the number series specified in the Advance Letter Invoice Nos. field on the advance letter template.

Post a VAT document manually

If the Automatic Post VAT Document field is set to No, no VAT document is created automatically when the advance letter is paid. The advance can still be applied to the final invoice.

If you want to post the VAT document later, you can trigger VAT document creation manually from the Advance Letter Entries.

To manually create a VAT document:

  1. Choose the Lightbulb icon icon, enter Sales Advance Letters, and then select the related link.
  2. In the list of sales advance letters, select the relevant advance.
  3. Choose Advance Letter Entries, and then select the line where the Entry Type field contains Payment.
  4. Run the Post Payment VAT action. The VAT Payment entry (and related VAT and general ledger entries) will be posted using the same posting date as the original payment.
  • If the Auto Post VAT Document field is still set to No when you post the final invoice, the advance won't automatically post for VAT. You must handle VAT posting manually. You can change this setting to Yes before you post the final invoice to enable automatic VAT posting.
  • If the advance was used in the final invoice but VAT was not posted, you can still post it manually afterward.

Manual VAT deduction from advance

To manually deduct VAT from an advance, follow these steps:

  1. Choose the Lightbulb icon icon, enter Sales Advance Letters, and then select the related link.
  2. In the list of sales advance letters, select the relevant advance.
  3. Choose Advance Letter Entries, select an entry of type Usage, and then select the Post Payment VAT Usage action. This action posts the VAT deduction using the date and document number of the posted final invoice.

Advance Payments for Czech Republic (Extension)
Czech Local Functionality
Finance