Not a problem, sir! The 100 rent deposit should be booked directly to the creditors account, with NOVAT. For example, create a cheque or expense in the bank account and categorise the proceeds toward the creditors account specifying the payee as bieng the landlord.
Then when you get your rent bill, input a bill for 200 with VAT 40 as normal.
Apply the 100 in the creditor account toward the bill and apply an ordinary bank payment for the rest of the bill.
[email address removed] is my e-mail in case you need anything.
