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1) Create advance Bank Receipt:

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2) Create Tax Invoice for the Bank receipt:

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In the Output VAT report, it is possible to see that the VAT has been calculated:

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3) Create the invoice and offset it with a Bank receipt (Creating an Invoice. Offsetting prepayments):

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Offset will deduct the VATon the advance,and the invoicewillcalculate the finalVAT.:

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