Scenario:
Your company has paid in advance to Supplier for Imported Service.
Our Suggestion:
1. Record the advance payment to Supplier.
* Do not offset the payment with any outstanding invoice yet.
2. Based on Section 13(4) of GST Act 2014, time of supply of imported services shall be treated to have been made when the supplies are paid for. Therefore we need to record the GST amount.
Go to Accounting > Journal Entry > General Journal and do the following entries:
Fill both GST Details as follow:
3. When you received invoice from Supplier, record in Supplier Invoice, save and post.
4. Go to Accounting > Offset/Reverse Documents > Creditor Document to offset the advance payment with the relevant Supplier Invoice.
