VAT Adjustment for Write-Offs Due to Other Reasons

This example has two scenarios:

• Invoices with VAT declaration point set to Invoice, Accounting Date, or Delivery

• Invoices with VAT declaration point set to Payment

VAT Declaration Point Set to Invoice, Accounting Date, or Delivery

A 119,00 EUR invoice is sent to the customer, and then the item is written off, due to a reason other than bankruptcy.

Here are the accounting entries:

1. When the invoice is sent to the customer:

   Accounting Entry	Debit	Credit
   Accounts Receivable	119,00
   User-defined (Revenue)		100,00
   VAT Output Final (VO)		19,00

2. When the item is written off:

   Accounting Entry	Debit	Credit
   Accounts Receivable		119,00
   Write-Off	119,00

VAT Declaration Point Set to Payment

A 119,00 EUR credit item is entered, and then the item is written off, due to a reason other than bankruptcy.

Here are the accounting entries:

1. When the credit item is entered:

   Accounting Entry	Debit	Credit
   Accounts Receivable	119,00
   User-defined (Revenue)		100,00
   VAT Output Intermediate (VOI)		19,00

2. When the item is written off:

   Accounting Entry	Debit	Credit
   Accounts Receivable		119,00
   Write-Off	100.00
   VAT Output Intermediate (VOI)	19,00
   VAT Output Final (VO)		19,00