Entering a Proforma Invoice

There are two methods to entering a proforma invoice

VAT Suspense Account Method  

Enter the first payment to the vat suspense account gross with no vat code. When the vat invoice comes in, enter it, draw-down the PO and then add a negative line to clear the suspense account.   With this method, you will need to still reconcile the VAT suspense account.  However, if all proformas are in one account it is not as clear as to what invoices are outstanding.

Deposit Account Method  

Enter the first payment to an individual vendor deposit account (one per vendor) gross with no vat code. When the vat invoice comes in, enter it, draw-down the PO and then add a negative line to clear the deposit account. With this method, you will not need to reconcile the vat suspense account and it is easier to see what invoices are still outstanding using the TB report.  However, it is more complicated initially setting up separate proforma deposit accounts per each vendor.

**The PO is drawn-down after the vat invoice is received, as the whole proforma invoice was coded to a deposit account.  Leaving the PO intact will reflect the cost correctly in the Cost Report.