Clients and suppliers with VAT, using the Cash principle

With the system of the VAT on cash received, there is no provision for entering transactions on the clients/suppliers accounts, for the expenses and income are being entered at the moment the payment is made or received. Only at that moment, the VAT code is being entered. However, in spite of this rule, it is still possible to enter the issued and received invoices by using the cost centers.

Procedure:

  • Insert the clients' and suppliers' accounts as cost center CC3, defined with the semicolon in two different groupings, one for clients, another one for suppliers.


Entering the invoices of clients and suppliers

For the issued and received invoices:

  1. Position yourself in the Transactions table, Cost centers view;
  2. Enter the date, the document number and the invoice number in the respective columns;
  3. Enter the description;
  4. Enter the amount of the issued or received invoice in the Amount column, the Debit and Credit columns have to remain empty.
  5. Enter the cost or profit center in the CC3 column: in positive when it concerns an invoice issued to a client; preceded by the minus sign (in negative)  when it is an invoice received from a supplier.


When the payment for an invoice is received or made:

  1. Position yourself in the Transactions table, Cost centers view;
  2. Enter the date, the document number and the invoice number in the respective columns;
  3. Enter the description;
  4. If it concerns a payment received, enter a liquidity account in the Debit column and a revenue account in the Credit column;
    When it's about a payment that has been made, enter an expense account in the Debit column and a liquidity account in the Credit column;
  5. Enter the amount;
  6. Enter the appropriate VAT code;
  7. Enter the cost or profit center in the CC3 column, preceded by the minus sign (in negative) when it is a payment received (customer) and in positive when it concerns a payment made to a supplier.
     

In the Account card of the cost center, the transactions of the customer or supplier are being displayed.

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