How to Record Advance Payments and Tax Documents for Payments Received
In the area of advance payments and tax documents for payments received, Abra Flexi has precisely defined rules and procedures. To record these documents, we will again create new advance document types and tax documents for payments received (ZDD), valid only for the periods being transferred.
Recording advance payments by deduction and payment status
We need to distinguish several advance payment statuses:
The advance invoice was issued but has not been paid – record it using the document type Advance – not a tax document; in double-entry bookkeeping, we do not post it, and in DE we use the appropriate posting template (for VAT payers in DE, we use the split into tax base and VAT for any future documents for a received payment);
The advance invoice was issued and paid, but has not yet been deducted – record it using the document type Advance – not a tax document, and settle it in the relevant currency to the cash desk or with a newly entered bank item; post the payment to the relevant advance payments account with the cash desk/bank as the offsetting account;
The advance invoice was issued, paid, and partially deducted – record the non-deducted amount using the document type Advance – not a tax document, and settle it in the relevant currency to the cash desk or with a newly entered bank item; post the payment to the relevant advance payments account with the bank or cash desk as the offsetting account;
The advance was paid, a tax document for the payment was issued, and it has not yet been used for a deduction or was deducted only partially – record the full/remaining amount using the document type Advance – not a tax document, and settle it in the relevant currency to the cash desk or with a newly entered bank item, then use the service to create a document of the ZDD type; post the advance payment to the relevant advance payments account with the bank or cash desk as the offsetting account; post the generated ZDD and, if necessary, change the tax document number and its variable symbol.
Before settling advance payments, the cash desks and bank accounts must already be created (see the next step – Creating the organization's cash desks and bank accounts).
A tax document for an advance payment can also be recorded in another way - entering a ZDD from a previous period
Even though this procedure may seem complicated, we recommend using it – it allows you to subsequently deduct advance payments or tax documents using the service.
The previous steps can be skipped, but you will then have to enter the advance/ZDD deduction items manually in the invoices you create afterward.
When keeping double-entry books, keep in mind this software behavior – a paid advance or a created ZDD is not treated as a receivable/payable posting. If these documents are issued in a foreign currency, they are not automatically revalued on the last day of the accounting period. It is therefore necessary (not only when transferring accounting) to perform the revaluation manually and record the exchange rate difference using an internal document, posted to the advance payments account, with the offsetting account again being the transitional account.