If the bonus/rebate amount is greater than the amount that our company owes to the supplier, then the difference might be considered an advance payment. If the supplier provided us with proper tax invoice, we can adjust the recoverable VAT according to the projected advance amount.
| A Rebate (bonus) is created as a Debit Note (Transaction Type = Mutual Settlements Adjustment) with the bonus amount. |
How to process
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Where: Accounting > Value Added Tax > Input VAT Transactions
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