How Do I Enter A VAT-Only Purchase Invoice?

Occasionally, invoices are received for which there is no cost, only VAT – e.g. for insurance or asset finance arrangements.

These can be posted in the usual way, simply by entering the same value for the Gross amount and the VAT amount, both being the amount of the supplier invoice.

Depending on the software parameters, you might have to take care to enter or override some default pre-populated values, e.g. VAT amount, Nett amount, VAT code and Nominal Analysis code, and acccept warnings about the entered VAT amount being different from the calculated VAT amount.

1. Enter the total invoice amount into the Gross and the VAT amount boxes.
   1. This is the VAT amount of the VAT-only invoice.
2. The software will display a calculated VAT amount as if the invoice was a standard VAT invoice, but ignore/override this.
3. Click OK to go to the Details page.
4. There is no Nett amount, so enter 0.00 in the Amount box and ensure VC and Analysis boxes are populated with suitable codes.
   1. Usually VC = 1
   2. Choose any Analysis code – it doesn’t matter as the Nett analysis is 0.00.
   3. Enter a Comment.
5. Click OK to post the invoice.