VAT Declaration Point Is Set to Payment

This example has two scenarios:

• Refunding a credit item.

• Refunding a credit item put on account.

Refunding a Credit Item

A 150.00 EUR credit item, including 8.25 EUR VAT, is entered, and then the credit item is refunded.

Here are the accounting entries:

1. When a credit item is entered:

   Accounting Entry	Debit	Credit
   Accounts Receivable		150.00
   User-defined (Revenue)	141.75
   VAT Output Intermediate (VOI)	8.25

2. When the customer requests a refund:

   Accounting Entry	Debit	Credit
   Accounts Receivable	150.00
   Refund Control		150.00
   VAT Output Intermediate (VOI)		8.25
   VAT Output Final (VOC)	8.25

Refunding a Credit Item Put on Account

A credit was created using a payment worksheet as a result of an overpayment. Then the following occurs:

• The overpayment was put on account (OA item, which is a credit item).

• The on-account item is refunded.

Here are the accounting entries:

1. When an invoice is sent to the customer:

   Accounting Entry	Debit	Credit
   Accounts Receivable	100.00
   User-defined (Revenue)		94.50
   VAT Output Intermediate (VOI)		5.50

2. When an overpayment is put on account as a credit item:

   Accounting Entry	Debit	Credit
   Accounts Receivable		100.00
   Cash	250.00
   OA Account		150.00
   VAT Output Intermediate (VOI)	5.50
   VAT Output Final (VO)		5.50

3. When the item is refunded:

   Accounting Entry	Debit	Credit
   Accounts Receivable	150.00
   Refund Control		150.00