How to charge vat on advance payment in manager?

1

We have situation where customers pay advance amount, however there would be NO SALES and Delivery would also be in future, therefore an Invoice can’t be raised at the point hence revenue can’t be recognize.

We would like to know how we can same time charge the VAT to customers, we tried to use Receipt function by unmarking “Amount is tax inclusive”, however this doesn’t show in the document nor recorded in the OUTPUT VAT.

Kindly suggest a solution else @lubos take a look to built as a function as very important.

Thank you in advance.

Best regards

Team DanOwa

2

VAT would be charged only on invoices and not receipts.
so just record the payment as a receipt by selecting the customer.
make a tax invoice when you deliver.

3

Please show the screen image of the edit screen of the Receipt transaction.

I did a receipt of a deposit from a customer, using a tax code and it all worked perfectly

4

@sharpdrivetek the reason is the as per the local VAT laws, must be charge on the following:
A) Sales Invoice
B) Advance Receipt
C) Delivery
Whichever is earlier.

@Joe91 kindly see the screenshot

We need to device the solution as per the VAT laws and other solutions are able to do that than why not Manager…

Manager%20advance%20payment
Manager%20advance%20payment1920×1080 193 KB

5

@danowagroup, in the first place, the screen shot you showed is of the View screen, not the Edit screen. View screens are not much use for providing assistance.

Second, checking the tax-inclusive box only determines whether tax is already included in the unit price or must be added to it. See Choose between tax-exclusive and tax-inclusive prices | Manager. Either way, the tax is posted to the Tax payable account.

Third, you said in your initial post that there would be no sale associated with the advance payment and that revenue could not be recognized. In that case, the receipt is merely a deposit against future sales and is not taxable, as you have not delivered any goods or services and the deposit is not associated with a specific sale. Handle such deposits according to this Guide: Record customer deposits and advances | Manager.

Fourth, if your first post was incomplete, and this receipt really is partial payment for specific goods or services, you need to raise a sales invoice, applying the relevant tax code(s) to appropriate line item(s).

6

They stated - the reason is this, as per the local VAT laws, must be charge on the following:
A) Sales Invoice
B) Advance Receipt
C) Delivery
Whichever is earlier.

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