Posting VAT only invoices

Posting a VAT-only invoice can be achieved by posting a non-order invoice with the applicable VAT rate and then posting a purchase credit note for the net amount of the invoice. The net value on both documents will offset to zero, leaving the VAT value on the applicable account.

In the example below we are going to post a VAT only invoice for £20.00.

1. In IRIS Financials, go to Options > Document Input and select the applicable non-order invoice document (__PI).
   
2. Enter the applicable Document Date and Document Period and click the OK button.
   
3. Double click in the Account field and select the applicable supplier account.
   
4. Enter the invoice number in the Invoice Number field.
   
5. Enter the total value of the document in the Document Control £ field. This includes any VAT.
   
6. Enter the applicable Nominal and Account.
   

7. In the Net field, enter a net value that will generate the required amount of VAT. In our example, a net value of £100.00 will generate a VAT value of £20.00 that is required in our example as shown in the following graphic.

   There are a number of online tools which will assist with the VAT calculation such as http://www.vatcalculator.co.uk/.

8. In the VAT Rate field select the applicable VAT rate which will calculate the amount of VAT required. In our example, we are using S20 - Standard Rate.
   
9. The VAT £ field will be automatically calculated based on the value in the Net field and the VAT Rate entered. This should be the amount on the VAT-only invoice.
10. The Gross field will be automatically calculated.
    
11. Enter an applicable Description for the invoice.
    

12. Repeat this for any additional lines that need to be added to the invoice and press F5 to post.

    The Gross Total for all detail lines needs to match the value entered in the Document Control £ field.

Once this document has been posted, you will need to post a credit note to offset the net value of the invoice document, which will leave the VAT amount remaining on the account.

On the credit note you should use the same nominal, account and net value as used on the non-order invoice, but the VAT Rate should be Zero.

To post the credit note:

1. In PS Accounting, go to Options > Document Input and select the applicable purchase credit note document (__PC).
   
2. Enter the same Document Date and Document Period as the non-order invoice and click the OK button.
   
3. Double click in the Account field and select the applicable supplier account.
   
4. In the Credit Number field, enter the same number as the non-order invoice.
   
5. Enter the same Nominal and Account and Net value as the non-order invoice.
   
6. The VAT Rate should be zero, so that no VAT is calculated.
7. The Gross value will be automatically calculated.
   
8. The Description field should be the same as the description on the non-order invoice.
   

9. Press F5 to post the document.

   On the supplier account, you will see the £100.00 credit note and the £-120.00 non-order invoice which will offset and leave a balance of £20.00. Both documents will pull through to a paylist to ensure the £20.00 can be paid.