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 will be 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
- Setup the VAT posting in VAT Posting setup page.
Receiving 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 -> press 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 will be added to the resulting posting. |
| Correction | Specifies the operation is corrective. |
Click "OK". The system will automatically create corrective entries.