Abra Flexi software has precisely defined rules and procedures for advance payments and tax documents on payment. To record these documents, we will again create new document types for advance payments and tax documents on payment (ZDD) that are valid only for the periods being transferred.
At the same time, we need to distinguish between several types of advance payment statuses:
The advance payment was issued but has not been settled – record it under the document type Advance Payment – Not a Tax Document; in double-entry accounting, no posting is made; in single-entry accounting, use the applicable posting rule (VAT-registered entities in single-entry accounting should split the amount into the tax base and VAT for any future documents relating to the received payment);
The advance payment was issued and settled, but has not yet been deducted – record it under the document type Advance Payment – Not a Tax Document and settle it in the relevant currency via the cash register or a newly entered bank transaction; post the settlement to the appropriate advance payment account with a contra account for cash/bank;
The advance payment was issued, settled, and partially deducted – record the undeducted amount under the document type Advance Payment – Not a Tax Document and settle it in the relevant currency via the cash register or a newly entered bank transaction; post the settlement to the appropriate advance payment account with a contra account for bank or cash;
The advance payment was settled, a tax document on payment was issued, and it has not yet been used for deduction or was only partially deducted – record the full/remaining amount under the document type Advance Payment – Not a Tax Document and settle it in the relevant currency via the cash register or a newly entered bank transaction; use the service to create a document of the ZDD type; post the advance payment settlement to the appropriate advance payment account with a contra account for bank or cash; post the generated ZDD and, if necessary, update the tax document number and its variable symbol.
Before processing advance payment settlements, cash registers and bank accounts must already be created (see the following step – Creating the organization's cash registers and bank accounts).
Although this procedure may seem complex, we recommend using it — it enables subsequent deduction of advance payments or tax documents via the service.
The previous steps can be skipped; however, in that case, advance payment/ZDD deduction line items must be entered manually on subsequently created invoices.
When maintaining double-entry accounting, please be aware of the following software behavior – a settled advance payment or a created ZDD is not treated as a receivable/liability entry. If these documents are issued in a foreign currency, they are not automatically revalued at the last day of the accounting period. Therefore, it is necessary (not only when transferring accounting records) to perform the revaluation manually and record the exchange rate difference using an internal document, posting it to the advance payment account with a bridging account as the contra account.