VAT by customer prepayment
When a company receives a prepayment from a Customer, you must create a VAT invoice and a VAT record for the amount of VAT.
Setup
- To enable the unrealized VAT in the window General Ledger Setup.
- Setup the unrealized VAT type and choose the account, which will be taken of the operation of unrealized VAT VAT posting setup.
- To configure the customer posting groups: set account, which is taken of the operation of the prepayment.
For each account in the chart of accounts, assign:
- General type of accounting
- VAT business group
- VAT product posting group
Set up the VAT posting in VAT Posting setup page.
Receive prepayment
After you receive prepayment from a customer, the system creates unrealized VAT records and VAT invoices.
Post prepayment in the General journal (see Prepayment to the vendor and customers).
Return prepayment
To return a prepayment, you must create a realized VAT record.
Go to Customer ledger entries > select returned prepayment > select return payment.
Fill in the fields:
Field Description Posting Date Specifies the posting date of the entries that you want to include in the report or batch job. Document No. Specifies the number of the related document. New posting Date Specifies the new posting date. New Document No. Specifies the new document number for the prepayment. Posting Description Specifies the description that is added to the resulting posting. Correction Specifies the operation is corrective. Select OK. The system automatically creates corrective entries.