Receipt of the invoice is necessary to deduct VAT.
The General Accounting Plan includes an account for invoices pending receipt.
An invoice pending receipt represents certain challenges for a business owner. After all, the invoice is a reference point for the operations being carried out. Therefore, it has an impact on compliance with tax and accounting obligations.
In fact, it is quite common that, even if cambodia email list payment is made on time and in the correct manner, the supplier delivers the invoices on a different date. This can cause various repercussions .
In today's world, data management is a priority for any business that wants to grow. Billing systems make the flow much easier:
They attest to the relationship with suppliers and customers .
In many cases, they reflect stock inflows and outflows that will impact inventories .
They allow accounting to be carried out .
They are a formal requirement in taxes , especially in relation to the deductibility of VAT .
They are a basic document for working on commercial collection and payment expectations.
Therefore, receiving or sending an invoice is a movement that will change various aspects of your business to some extent. However, the fact that they are pending does not mean that you can ignore the fact that your company still needs data to guide its management in various areas.
For this reason, it is very important to work on the integration of all data flows (accounting, sales, inventories, taxes, treasury, etc.). Fortunately, today there are integrated solutions, such as Sage 50 , that allow all data to be coordinated.
This gives you a more balanced view of your business as a whole. Even if you're waiting for invoices to arrive, when they arrive, you're in a good position to understand their impact. And while you're waiting, you can gain the best perspective for decision-making.
How to record pending invoices
For these cases, if you check the General Accounting Plan, you will see that there is a specific account. It is account 4009, for suppliers, invoices pending receipt or formalization. Although the names are not mandatory, you can use it as a reference.
Accounting in account 4009
Account 4009 is used by the company to record debts for purchases that have already been made, but for which the invoice has not yet been received. Therefore, you can use this account for supplier invoices that are still pending receipt.
As for VAT, a first option is not to account for it yet, if you have doubts that you will end up receiving the invoice, which would prevent you from deducting VAT. In this way, for the amount without VAT, you would charge the corresponding account of subgroup 60 with a credit to account 4009.
You could also choose to reflect this VAT that is not yet deductible in an account for this purpose , such as Public Treasury VAT supported on invoices pending receipt. You would charge the corresponding account of subgroup 60 for the amount without VAT and the account that reflects this VAT that you cannot yet deduct for the amount of the tax with a credit to account 4009.
VAT plays a relevant role in the accounting of invoices pending receipt
Once you have received the invoice , you will record the amount in account 4000 or, if it is in a foreign currency, in account 4004, crediting those accounts by debiting account 4009. At that time, you will reflect the VAT in account 472, debiting it with a credit to those supplier accounts, if you did not reflect it in the accounts at the time. If you chose to record it in an account for this purpose, you will debit account 472 with a credit to said account.
