How to register VAT on turnover (accrual principle)

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Entities who are subject to process VAT based on the turnover must set up the customers and suppliers register in the Plan of Accounts.

Information helping you to correctly set up the customers and suppliers register is available on the Customers and Suppliers page.

Invoices from customers and suppliers must be registered at the time of issue and receipt respectively.

For VAT on turnover, this is registered when the invoice issued and received is entered with the insertion of a VAT code, provided for in the VAT Code Table.

Register a customer invoice:

  • Enter the date and description
  • Enter the customer's account as Debit
  • Enter to the revenue account as Credit account
  • Enter the gross amount (including VAT)
  • Enter the appropriate VAT code in the VAT code column, for the type of revenue (e.g. for sales, enter V77).
    The program removes VAT from the revenue account, automatically registering it in the 2201 VAT account, report.

Invoice to customer

Register a supplier invoice:

  • Enter the date and description
  • Enter the cost account as Debit
  • Enter to the supplier's account as Credit account
  • Enter the gross amount (including VAT) in the Amount column
  • Enter the appropriate VAT code in the VAT code column, for the type of cost (e.g. for supplies for principal activity, enter M77).
    The program removes VAT from the cost account, automatically registering it in the 2201 VAT account, report.

Invoice from supplier

Collection and payment of invoices

When the collections and payments are registered, gross amounts of accounts of customers and suppliers (including VAT), previously registered with the issue and receipt of the invoice, are reversed.

Collection of the customer invoice:

  • Enter the date and description
  • Enter the Bank or Post office or Cash account as Debit
  • Enter the customer's account as Credit
  • Enter the gross invoice amount

Payment of invoice to the supplier:

  • Enter the date and description
  • Enter the Bank or Post office or Cash account as Credit
  • Enter the customer's account as Debit
  • Enter the gross invoice amount

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