Managing Advance Invoice Records Including VAT
Use this document to understand how to handle advance invoice records with VAT in 'Rental Agreement. Invoice in advance (STS112)'.
Limitations
This functionality is only available for VAT companies.
You cannot credit an advance invoice. If you credit a rental invoice including settlement for an advance invoice, the full rent amount of the original invoice is credited without withdrawing the advance invoice amount. The advance invoice record is not updated in (STS112).
If the 'Deposit' field is set to 5 or 6 in 'Rental Agreement Order Type. Open' (STS020), you cannot add deposits to the rental agreement in 'Rental Agreement Deposits' (STS110).
- Rental agreement lines type 5, 7, 8 and 4 generate an advance invoice record in (STS112). For other line types, you can add records manually in (STS112). These records then settle against the agreement line.
- Updating the payer of the agreement line in 'Rental Agreement. Open Lines' (STS201) does not update the advance invoice record in (STS112). You must manually update the record in (STS112).
- Line charges are not included in the rent amount when calculating the amount for advance invoice records that are automatically added to (STS112).
You cannot use advance invoicing in combination with stepped price.
Creating Advance Invoice Records
You can access (STS112) through related option 34='Adv invoicing' in 'Rental Agreement. Open' (STS100). To use (STS112), you must set the 'Deposit' field in (STS020) to 5-'Adv invoice manual' or 6-'Adv inv auto factor'.
Alternative 5 is used to manually create the advance invoice record for a fixed amount.
Alternative 6 is used to automatically create and calculate the advance invoice record as a percentage of the rental amount. If alternative 6 is used, the 'Deposit factor' field on (STS020/E) is used to set the calculation factor, expressed as a percentage.
If you create an advance invoice record in (STS112) using alternative 6 and add additional agreement lines in (STS201), the existing advance invoice record is updated in (STS112) if it is for the same payer as the added agreement line and is in status 20. A new record is created in (STS112) if you have already invoiced the existing record or if the agreement line added to (STS201) uses a different payer.
If you update the price or agreement period of an agreement line in (STS201), the advance invoice record in (STS112) is updated if it is created using alternative 6 and is in status 20.
A VAT code is automatically assigned, based on the rental agreement customer and warehouse, when an advance invoice record is added to (STS112). The VAT code is editable and remains so until the advance invoice record is invoiced. After the advance invoice record is invoiced, the VAT amount is retrieved to (STS112).
Settings
Set the 'Deposit' field to 5-'Adv invoice manual' or 6-'Adv inv auto factor' in (STS020).
Invoicing Advance Invoice Records
Related option 14='Interactive invoice' in (STS112) is used to invoice the advance invoice record.
The VAT amount is retrieved in (STS112) after the advance invoice record is invoiced.
Accounting event and rule SO20-171 with IVTP 50 for the advance invoice amount paid in advance, SO20-111 with IVTP 41 for the VAT amount paid in advance, and SO20-100 with IVTP 03 for the invoice head, is used for accounting.
Settle Advance Invoice Records
An agreement line must exist in (STS201) with the same payer as the advance invoice record in (STS112) for the advance invoice to be settled.
When you start to invoice the rental agreement, the advance invoice amount and VAT create a positive IVTP 51 and IVTP 42 for each rental invoice until the complete advance invoice amount is fully settled.
If the advance invoice amount is equal to or lower than the rent amount, the full advance invoice amount is settled on the first rental invoice. If the advance invoice amount is higher than the rent amount, an amount equal to the rent amount is settled. The remaining amount, including VAT, is saved in (STS112). The remaining amount is settled on subsequent rental invoices until fully settled.
If an advance invoice amount remains unsettled at final invoicing and the remaining rent amount does not cover it, the full remaining advance invoice amount is withdrawn from the last rental invoice, which may result in a negative amount.
If final invoicing is already performed and an advance invoice amount remains unsettled, option F14='Return Deposit' is available in (STS112). You can use option F14 to reverse and credit the remaining advance invoice amount. This action is available only if the rental agreement is in status 90.
References to the advance invoice is also included for e-invoicing and invoice BOD.