Set up advance payments in the Czech version

To work with Advance Payments functionality, you must configure:

  • Number series
  • Posting accounts
  • Report selections

Advance letter templates

Advance letter templates are the foundation of the setup for Advance Payments. They group advances into categories and provide default settings used to generate advance invoices.

Advance Letter Templates

To configure an advance letter template, follow these steps:

  1. Choose the Lightbulb icon icon, enter Advance Letter Templates, and then select the related link.
  2. Fill in the following fields:
    • Code – Unique code to identify the template, typically per sales or purchase. You can create as many templates as you need, but create at least one per area.
    • Description – Description of the template.
    • Sales/Purchase – Specifies whether the template is for sales or purchase.
    • Advance Letter Document Nos. – Number series for advance letters.
    • Advance Letter Invoice Nos. – Number series for advance VAT documents.
    • Advance Letter Cr. Memo Nos. – Number series for advance VAT credit memos.
    • Advance Letter G/L Account – G/L account used to track advance payments (advance balances).
    • VAT Bus. Posting Group – Default VAT business posting group for the template. If empty, the group from the customer or vendor is used. The setting in the template takes precedence.
    • Automatic Post VAT Document – Indicates whether to automatically post the VAT on the advance when the advance is applied in a final invoice. For sales, this setting also controls automatic posting of the VAT document for the advance payment. For purchases, the VAT document must always be posted manually. The value can be changed per document.
    • Automatic Post Non-Deductible VAT – Indicates whether to automatically post nondeductible VAT.
    • Post VAT document for Reverse charge – Indicates whether post VAT document for reverse charge.
  3. After completing the setup, you can close the page.

VAT posting setup for advances

For every combination of VAT posting groups that requires posting of a VAT document for an advance invoice, you must fill in the relevant fields on the Advance CZZ FastTab on the VAT Posting Setup page.

VAT Posting Setup

To set up VAT posting for advance payments, follow these steps:

  1. Choose the Lightbulb icon icon, enter VAT Posting Setup, and then select the related link.
  2. Select the VAT posting group combination you want to configure, and choose Edit.

  3. On the Advance Payment FastTab, fill in the following fields:

    • Sales Advance Letter Account / Purchase Advance Letter Account – G/L account for the advance base amount.

    • Sales Advance Letter VAT Account / Purchase Advance Letter VAT Account – G/L account for the advance VAT amount.

      The VAT Document or Credit Memo post to these two accounts.
      The Advance Letter Account might or might not be the same as the Advance Letter G/L Account defined in the template. The Advance Letter VAT Account is used exclusively for VAT tracking.

  4. After finishing the setup, close the page.

Report selections for sales and purchases

You define the reports related to advances (advance invoices, VAT documents, and credit memos) using a report selection.

Report selection for purchases

To configure report selection for purchase advance invoices, follow these steps:

  1. Choose the Lightbulb icon icon, enter Report Selection - Purchase, and select the related link.
  2. Select the usage Invoice, and set the Report ID to 31028 Purchase – Invoice with Advance.
  3. Close the page.

Report selection for sales

To configure report selection for sales advance invoices, follow these steps:

  1. Choose the Lightbulb icon icon, enter Report Selection - Sales, and select the related link.
  2. Select the usage Invoice, and set the Report ID to 31189 Sales Invoice.
  3. Close the page.

VAT statement setup

When you post VAT entries from advances, the standard Base and Amount fields are used. Therefore, the Amount Type field on the VAT Statement page only needs to be set to the standard Base and Amount options. VAT entries from advances are automatically included in the VAT statement, and no separate lines are needed for them.

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