I have a small Ltd co client registered for VAT under the cash accounting scheme. They are issuing proforma invoices at point of sale, by way of securing a 50% deposit on sale of goods. Final vat invoice is raised at point of despatch for the full amount less payments already received. How do I reflect the proforma and final invoice transactions in VT?
Do I just record the deposit received as a payment on account, or can I link it to a proforma invoice transaction?
How do I ensure the VAT is reflected in the vat return at during the quarter when the final invoice is paid?
Thanks in advance for your help, I've thought about this for too long and am completely muddled now.