VAT posting in Prepayments

n_c_balaji

Hi All,

I am having an issue with the VAT posting of Purchase Prepayments Dynamics NAV 5.0. When I am posting documents with VAT, the system calculates VAT based on the VAT product Posting Group specified on the G/L Account. For instance even if i am posting a document with 10 percentage VAT system posts VAT 25 percentage. The VAT Percentage should rather be picked from the Item lines of the Document.

Is it a standard bug. Kindly share your thoughts if anyone has encounteredc such situation......

Thanks,

Balaji

sumangoudangola

Hi All,

Please help me in the same issue, Even i am also facing similar problem. Like............

I have create a Sales order in that there are 2 Sales line where.. Prepayment (50%) [to this Prepayment G/L account I have defined Tax Area code, Tax Area Liable, Tax Group code(VAT(12%)

ItemA Qty(1) Unit Price(100) Tax Group Code(VAT10%) Prepayment Tax Area code (VAT 10%)
ItemB Qty(1) Unit Price(100) Tax Group Code(BLANK) Prepayment Tax Area code (BLANK)

So..When post my Prepayment Invoice.. my G/L Entries are..

Prepayment A/c Cr 100 (for 2 sales lines)
Sales Vat A/c Cr 5 (for 1 sales line)
Customer A/c DR 105

After processing Shipment for above sales order...
I am posting acutal sales invoice...when i post sales invoice with same as above, My G/L entries are..

Sales Turn over A/c Cr 200 (for 2 sales lines)
Sales Vat A/c Cr 10 (for 1 sales line)
Prepayment A/c DR 100 (Reversal entry)
Sales Vat A/c DR 12 (Reversal Entry) [which is wrong, where it is calculating as per the Tax group code defined in
Prepayment G/L Account]
Customer A/c DR 98

Actual entries should be...

Sales Turn over A/c Cr 200 (for 2 sales lines)
Sales Vat A/c Cr 10 (for 1 sales line)
Prepayment A/c DR 100 (Reversal entry)
Sales Vat A/c DR 5 (Reversal Entry)
customer A/c DR 105

I am breaking my head on this issue ](*,) ](*,) ... Please kindly help me on this issue..

If I am wrong also please let me know.....

Advance thanks for everybody.....

ivankoletic

This is not a bug. This is the way prepayments are designed.

Have a look at prepayments white paper https://mbs.microsoft.com/partnersource/deployment/documentation/whitepapers/MSDNAV20095SP1PPmtsWP.htm