Understanding Deferred Invoices and VAT
For deferred invoices, the VAT payable on sales should be declared with reference to the shipment date, not the invoice date. An example of deferred invoices is a product that is delivered daily and invoiced monthly.
Two types of deferred invoices are:
The invoice date and shipment date are in the same reporting period, but the shipment date is prior to the invoice date.
The invoice date and the shipment date are not in the same reporting period, and the shipment date is prior to the invoice date.
The second type of deferred invoice impacts summary VAT reporting. VAT should be accounted for the shipment month if that month is prior to the invoice month. To accomplish this task, the system evaluates the shipment date of a sales order to determine if it is prior to the invoice date.
This evaluation is performed during the Sales Update process (R42800) through the use of a country server. If the shipment date is prior to the invoice date, the system updates the Service/Tax Date field in the F03B11 and F0911 tables.