VAT on advance payment - VAT output

A record with this entry type is made when a company receives an advance payment from a customer and registers VAT output 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 received from customers. Typical steps of this process are the following:

1. Register an advance payment from a customer.
2. Register VAT output increase in the amount of VAT included in the advance payment.
3. Issue an invoice to a customer for provided goods, work, and services. In this step, also fully or partially offset the advance payment and the customer’s debt.
4. Register VAT output 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 receipt (as a source document) registers an increase in VAT output in step 2 above, it also makes a record with the VAT on advance payment - VAT output 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 receipt is posted with the following settings:
   • Operation is set to Payment from customer.
   • 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 on advance payment - VAT output 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

Debit details for counterparty:

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

Credit details: none

Amount:

• Amount (Presentation currency)

Application in accounting templates

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

Debit   VAT on advance payments from customers
   Credit   VAT output