Many of the Accounts on card 2 are used when the process of creating Nominal Ledger Transactions from Purchase Invoices and Payments involves a currency conversion. Please refer to this page for full details.

On Account A/C: If you issue Prepayments or On Account Payments to a particular Supplier without reference to a specific Invoice (usually before you have received the Invoice), these can be entered to the Payment register with a Prepayment Number on flip E of the Payment screen (a "Prepayment") or without a Prepayment Number (an "On Account" Payment). You may want to use a special Account for such Payments. Specify that Account here, and switch on the On Account check box on the 'Terms' card of the record of the Supplier in question. When a Prepayment or On Account Payment is entered and approved, its value will be debited to this Account.; The Account specified here will be overridden if a separate such Account has been specified for the Supplier Category of the Supplier or for the Supplier itself ('Accounts' card).
On Account VAT, Prepayment VAT: These fields are used when the Nominal Ledger Transactions from On Account Payments and Prepayments are to include a VAT element. This is the case in Russia and by users of the Cash VAT scheme in the UK where VAT can be claimable on On Account Payments. When a Prepayment or On Account is received, the VAT Code and Amount should be specified on flip F. If the VAT Code field contains a value, the VAT Amount will be credited to the On Account VAT Account and debited to the Prepayment VAT Account.

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