This function has been designed for use in Russia, where output (sales) VAT is calculated from monies received (i.e. from Receipts). In the case of deposits that have been received for goods or services that are not going to be delivered until the next month, the supporting Invoice may not have been raised yet, so this function can be used to create and print a Prepayment Invoice for filing.

The deposit is entered as a Receipt, but leave the Invoice Number blank. Instead, a Prepayment Number should be specified on flip D: this can be a number of your own generation, the number given to the deposit by the Customer or the Order Number of the Order against which the deposit has been received. In the first two cases, enter the Customer Number and Received Value. In the last case, use 'Paste Special' to obtain a list of Orders from which the correct one can be chosen. The Customer will be changed to that of the Order, and the Bank Amount and Received Value will be changed to the Order total. Change the Received Value to the value of the deposit if this is different. In all cases, the Customer must be one whose On Account box on the 'Terms' card has been checked.

Enter a VAT Code on flip E and a VAT Value will be calculated automatically. Check this is correct and then select 'Create Prepayment Invoice' from the Operations menu. An Invoice is created immediately. It is opened in a new window, entitled 'Invoice: Inspect'. This means that it has been created and saved and is being opened for amendment and checking. Note that if there is no On Account VAT Account specified on card 2 of the Account Usage S/L setting, no Prepayment Invoice will be created.

Print the Invoice in the usual way. Then, close it using the close box. Do not approve the Prepayment Invoice: it has only been created to allow the printing of an Invoice for filing and to ensure the Russian Sales Book report is accurate. If you do approve the Invoice, no Nominal Ledger Transaction will be created, but some reports may become inaccurate. When the goods or services are delivered, a standard Invoice should be created and approved in the usual way.

When the Receipt is approved, the Nominal Ledger Transaction will include a VAT posting crediting the Output Account for the VAT Code with the value shown on flip E of the Receipt and debiting the On Account VAT Account specified on card 2 of the Account Usage S/L setting.

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