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255Hi Everyone
I have a challenge with how my VAT statement accounts for VAT on prepayments.
The process that we follow is:
I have a challenge with how my VAT statement accounts for VAT on prepayments.
The process that we follow is:
1. A PO is created say on 21 November 2024 and requires a prepayment of 100% - Prepayment is created along with a unrealized VAT entry which we set up.
2. At time of Payment recon for the month of November we have to apply the Prepayment invoice etc. but doing so it creates the VAT entry on my Purchase VAT account for that month.
3. But we only get the invoice from the Vendor on 31 December and receive and invoice the PO on that date.
What we want the outcome to be, is that VAT only be recognized on the day where we receive the actual invoice, so that my VAT statement doesn't include the 21 November amount (for the November run) and will only include that entry in the December run.
Is there something that I might have missed on setup/posting?
Regards,
2. At time of Payment recon for the month of November we have to apply the Prepayment invoice etc. but doing so it creates the VAT entry on my Purchase VAT account for that month.
3. But we only get the invoice from the Vendor on 31 December and receive and invoice the PO on that date.
What we want the outcome to be, is that VAT only be recognized on the day where we receive the actual invoice, so that my VAT statement doesn't include the 21 November amount (for the November run) and will only include that entry in the December run.
Is there something that I might have missed on setup/posting?
Regards,
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