VAT only Sales Order
You can enter VAT only transactions in the Sales Ledger but this does not produce any documentation.
Sometimes you may wish to produce a printed invoice or a credit Note for a VAT only amount.
There is a work-around to produce these documents in the Sales Order processing module.
Enter the Header information on your transaction in the usual way.
When you come to the Detail section of the transaction, you need to post two Detail lines to give the VAT amount.
For example, if you want to get a VAT only Invoice for £17.50:Enter the first Detail line for a quantity of 1, a value £100 and a VAT code that will apply a rate of 17.5%.
Enter the second Detail line for a quantity of 1, a value of minus £100 and a VAT code that will apply a rate of 0%.
You must ensure that the same Analysis Code is used for both lines so that the same Nominal codes are updated.
The two detail lines contra each other out, because the same Analysis Code was used, so the only monetary value will be posted to the VAT Control Account.