In situation when we need to calculate VAT at retention Invoice we need to complete the settings in contract with customer:
For this setting, it is needed to open contract with Terms tab.
Here it should be marked "Apply retention", set percentage of retention, retention periods and Calculation VAT at retention Invoice should be set as "yes".
After creating Estimates for current project we may generate Progressive Invoice for project:
Before creating new Invoice document window with percentage of estimated revenue will appear:
After indicating of percentage, Invoice document will be generated:
With completion of project tasks when it will be time to return retention, it should be generated from Invoice with transaction type "Retention Return"
The details will be filled automatically from the Invoice
And based on this Invoice, we may generate Tax Invoice.
Thanks for being a FirstBit Customer! #Contracting #Vat on retention