Understanding the GL Impact of Prepayment Invoice Process [Legacy][Pre-3.9.0]
Please find the below sample scenario to help better understand the accounting impact of the transactions.
Use Case
Assuming we have one line item in the sales order amounting to 1 000 PLN before tax. VAT rate is at 23%.
Receipt of Payment (through Customer Payment transaction / Journal transaction)
| Debit | Credit |
|
|---|---|---|---|
Bank | 123 |
|
|
Accounts Receivable - Clearing |
| 123 |
|
To record the receipt of the cash amounting to 123, which is 10% of 1 230.
Recording of Prepayment Invoice (through customized Journal transaction)
Account | Debit | Credit |
|
|---|---|---|---|
Accounts Receivable - Clearing | 123 |
| This will be sourced from the Poland localization settings: Default Prepayment Account |
Deferred Revenue (Prepayment) |
| 100 | This will be sourced from the Poland localization settings: Default Deferred Revenue Account |
Output VAT |
| 23 |
|
Final Invoice (through Invoice transaction)
Account | Debit | Credit |
|
|---|---|---|---|
Accounts Receivable | 1107 |
| This will be sourced from the default accounts receivable in the customer/sales order. |
Deferred Revenue (Prepayment) | 100 |
| This will be sourced from the item record defined as a prepayment item in the Poland localization settings: Deferred Revenue Item. The amount is based on the previous prepayment applied. |
Output VAT | 23 |
|
|
Income * |
| 1000 | This will be sourced from the actual item in the invoice. |
Output VAT |
| 230 |
|
©2024 Staria. All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher.