payments on account

[ne]

hi folks,
can someone shed come light on this im a little confused
if a poa is made to supplier,(this is not a customer/supplier activity) then supplier issues inv (vat reg) which includes a part repayment deduction where should this be, after the bottom line or before vat.
thanks in advance

[deanshepherd]

Assuming you did not claim any VAT on the poa then it will show after the bottom line once you have claimed all the VAT in full.

If you did claim VAT on the poa then you will have to adjust the figures accordingly when you enter the invoice.

[claudialowe]

If you are on cash accounting the full amount of VAT should be deducted when you paid the invoice, and therefore the full amount (with no VAT) when the invoice is entered.

If you are on standard accounting then no VAT should be deducted when making the payment and full amount of VAT deducted when the invoice is entered.

Hope this helps.

Claudia