Accounting Entry Example 2: Prepayment with 100% VAT on Regular Voucher

This scenario assumes:

• Prepayment for 1196.00 EUR.

• Applied regular voucher for 3588.00 EUR.

• VAT declaration point is invoice.

  Note:

  The Voucher Posting process creates similar accounting entries when the VAT declaration point is invoice, delivery, or accounting date.

Prepaid Voucher

Accrual (voucher posting):

Description	Account	Debit	Credit
Prepaid Expense	122000	1000.00 EUR	N/A
VAT Input Recoverable	206103	196.00 EUR	N/A
Accounts Payable	200000	N/A	1196.00 EUR

Payment (payment posting):

Description	Account	Debit	Credit
Accounts Payable	200000	1196.00 EUR	N/A
Cash Distribution	100001	N/A	1196.00 EUR

Applied Regular Voucher

Accrual (voucher posting):

Description	Account	Debit	Credit
Expense Account	631000	3000.00 EUR	N/A
VAT Input Recoverable	206103	588.00 EUR	N/A
Accounts Payable	200000	N/A	3588.00 EUR
Prepaid Expense	122000	N/A	1000.00 EUR
VAT Input Recoverable	206103	N/A	196.00 EUR
Accounts Payable	200000	1196.00 EUR	N/A

Payment to supplier for 2392.00 EUR.

Payment (payment posting):

Description	Account	Debit	Credit
Accounts Payable	200000	2392.00 EUR	N/A
Cash Distribution	100001	N/A	2392.00 EUR