If a company receives a purchase invoice, for example from an insurance company, where only the VAT portion is paid and the insurance company pays the rest of the invoice, there are, among others, the following ways to proceed.

1. Record the entire invoice amount on the debit line with the correct VAT percentage and code (e.g., 25.5% KOOS)  and the credit line as the tax-free amount paid by the insurance company with 0% KOOS. In this case, the entries on the expense account will be +-0 € and the VAT will be recorded in VAT receivables.

2. An alternative is to record only the VAT portion on the invoice using VAT % 0 and VAT code 100%. In this case, the invoice amount is changed to only the payable VAT amount. This results in an entry between accounts payable and VAT receivables in the background. 


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