To ensure the correctness of tax records, taxable persons are responsible for maintaining a Ledger of Prepayments Made. For this purpose you can create documents of the Prepayment Made Document Type.

A prepayment made document will not effect warehouse records, which is why it can also be created by adding orders to a document.

You can use the following procedure to track prepayments made:

1. Bank Reconciliation

Create a bank reconciliation for a prepayment made to a supplier. You've used the number of a supplier's quotation for the linked document. The amount paid is 250 EUR.

Once you've received an invoice for a prepayment, it can be entered as a document using the prepayment made document type.

The date of the prepayment invoice is also the date the amount will be included in tax records!

3. Posting an Invoice for a Prepayment Made

Post an invoice for a prepayment made using automatic posting of invoices received or in the Posts panel in the document. Use the internal document number of the linked document.

Journal entry lines - only VAT is posted:

When you receive goods or services for which prepayments have been made, create a receiving invoice as usual.

5. Linking an Invoice with a Prepayment (Negative Prepayment Invoice)

When you enter a receiving invoice, indicate (check) the prepayments you will be linking to the received invoice and click on the Confirm button. The program will create negative prepayment documents in the amounts that have been linked with the receiving invoice. You can specify the type of document used to create a negative prepayment invoice in the Document Types - Prepayments Made  settings.

Linked negative and positive prepayment invoices can be found in the Links | Linked to Prepayments panel, where they can also be opened simply by double clicking on the number of the desired document.

When creating a negative prepayment invoice for a given prepayment, linked documents are filled out in the negative prepayment invoice: -Linked document 1: the internal number of the prepayment invoice from which the negative prepayment invoice was automatically created -Linked document 2: the internal number of the received invoice with which the negative prepayment invoice is linked

In this case, the ledger of prepayments made will display the reconciled status of the respective prepayments and the negative values from the negative invoice for the prepayment.

6. Automatically Posting a Negative Prepayment Invoice

Journal entry lines:

In the Links | VAT panel of the negative prepayment invoice, you'll find the VAT date from the original invoice for the prepayment made. In the case of users of Article 65 of the ZDDV, this date will also be used to determine the share of input VAT for posting and for a report of the ledger of prepayments made (for an example, see Negative Prepayments Made for Users of Article 65 of ZDDV-1).

7. Automatically Posting a Received Invoice

Journal entry lines:

8. Link a Prepayment with an Invoice Received

In the Closing Prepayments menu, link a prepayment made with an invoice received

Journal entry lines as produced by automatic closing of prepayments:

Of course, there are other ways to carry out the entire procedure: you can, for instance, create an invoice for a receiving prepayment before you create a bank reconciliation.

9. Ledger of Prepayments Made

If you print out a ledger of prepayments made for both periods together, you will see that the account of the value of the documents and taxes is equal to 0, because the value has been negated by the negative prepayment invoice.

:

General Functions:

• Prepayments Made

• Creating a Receiving Prepayment Invoice