VAT input - VAT on advance payment

A record with this entry type is made when a company makes an advance payment to a supplier and registers VAT input in the amount of VAT included in this payment.

For more information on this entry type, see:

• Entry type conditions
• Entry type details
• Application in accounting templates

Entry type conditions

1C:Drive supports processing of VAT related to advance payments made to a supplier. Typical steps of this process are the following:

1. Register an advance payment to a supplier.
2. Register VAT input increase in the amount of VAT included in the advance payment.
3. Register an invoice from a supplier for the provided goods and services. In this step, also fully or partially offset the advance payment and the debt to the supplier.
4. Register VAT input decrease in the amount of VAT included in the offset advance payment.

Which document registers VAT increase and decrease in steps 2 and 4 is specified in a company’s accounting policy. 1C:Drive offers two options for registering VAT entries on advance payments:

• Source documents (bank payments, bank receipts, and so on). In this case, a source document makes all necessary records.
• Advance payment invoices. In this case, you need to register a tax invoice in addition to a source document.

If, according to the company’s accounting policy, a bank payment (as a source document) registers an increase in VAT input in step 2 above, it also makes a record with the VAT input - VAT on advance payment entry type in the Accounting entries data register.

Below is the detailed list of conditions for a record with this entry type:

1. In the company’s accounting policy:
   • The Registered for VAT checkbox is selected.
   • The Register VAT entries on advance payments checkbox is selected.
   • Register VAT entries on advance payments with is set to Source documents (bank payments, bank receipts, and so on).
2. Bank payment is posted with the following settings:
   • Operation is set to Payment to supplier.
   • The Paid checkbox is selected.
   • On the Additional information tab, Tax category is set to Domestic rates VAT.
   • On the Payment allocation tab, the Advance payment checkbox is selected.
   • On the Payment allocation tab, the Tax field is filled in.

Entry type details

A record with the VAT input - VAT on advance payment entry type includes the details listed below. Note that the details are grouped by their purpose and text in italic font provides an additional explanation:

General details:

• Document date
• Company
• Presentation currency
• VAT ID
• Tax category
• Tax rate
• Payment date

Debit details: none

Credit details for counterparty:

• Counterparty
• Contract
• Order
• Settlement currency - contract currency
• Document - bank payment

Amount:

• Amount (Presentation currency)

Application in accounting templates

You can use the details of a record with the VAT input - VAT on advance payment entry type as the data source to create a template for an accounting entry with the following accounts:

Debit   VAT input
   Credit   VAT on advance payments to suppliers