User Question:
The Invoice received has been paid, but it is still shown as outstanding in the supplier balance.
debit and credit turnovers on the Input VAT account do not match, and part of the VAT remains unreclaimed. How can I identify which transaction is causing the difference?
Problem / Symptom
A Invoice received has been paid, but after posting the payment, the invoice continues to be displayed as outstanding.
The Bank Payment and corresponding Cheque Issued have been posted, but the payment has not settled the Invoice received.
Conditions
The Invoice received is posted.
The payment was processed using a Cheque Issued and Bank Payment.
The payment has been posted.
The Invoice received remains outstanding after the payment is posted.
Root Cause
The payment in the Cheque Issued was processed as an advance payment.
The Advance option is selected, while the corresponding supplier invoice is not specified in the Document field on the Payment Details tab.
As a result, the payment is treated as an advance payment instead of being allocated to the specific Invoice received.
Diagnostics
Open the Bank Payment related to the supplier payment.
Identify the corresponding Cheque Issued.
Open the Cheque Issued.
Go to the Payment Details tab.
Check whether the Advance option is selected.
Check whether the corresponding Invoice received is specified in the Document field.
If the Advance option is selected and the Document field is not filled in, the payment has been processed as an advance rather than allocated to the specific Invoice received.
Resolution
Unpost the Bank Payment.
Unpost the corresponding Cheque Issued.
Clear the Advance option in the Cheque Issued.
Specify the corresponding Invoice received in the Document field.
Repost the Cheque Issued.
Repost the Bank Payment.
Check the supplier balance. The supplier invoice should now be displayed as paid.
Related Materials
The debit and credit turnovers on the Input VAT account do not match, resulting in a remaining debit balance and unreclaimed VAT amount.
Conditions
- Transactions with Input VAT have been posted.
- The Input VAT account has a remaining debit balance.
- Debit and credit turnovers for the Input VAT account do not match.
- The discrepancy can be traced to one or more source documents.
Root Cause
The corresponding Tax Invoice Received is missing or has not been processed correctly for one or more transactions. As a result, the Input VAT is not fully reclaimed, leaving a balance on the Input VAT account.
Diagnostics
- Open the Trial Balance for the relevant Input VAT account and identify transactions with a remaining debit balance.
- For any discrepancy on the Input VAT account, always verify whether the corresponding Tax Invoice Received has been processed correctly.
- Open the relevant source document, such as an Invoice Received or Employee Expense Report.
- Check whether the corresponding Tax Invoice Received is correctly specified and posted.
- Identify the transaction for which the Tax Invoice Received is missing or processed incorrectly.
Resolution
- Open the source document causing the discrepancy.
2. Specify the corresponding Tax Invoice Received in the Tax Invoice field.
3. Repost the document if required.
4. Regenerate the relevant Input VAT report and verify that the remaining balance has been cleared.
Related Materials
6.3.3. Employee Expense Reports
7.7. Accounting: Reports6.4.2.1.2. Creating a Cheque Issued. The Payment Details tab
Product / Configuration
FirstBit ERP/FirstBit Accounting/FirstBit Contracting
Functional Area/Firstbit Software Section
MoneyAccounting
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Alternative User Questions / Keywords
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