Calculating VAT based on invoice value less discount

Smashed_Pumpkin

Hi,

In Navision 3.60, is it possible to have the VAT on a sales invoice calculated based on the net amount of the invoice less the payment discount?

Torben_R.

Sure.

You just have to add the field "Pmt. Disc. Excl. VAT" to form 118 "General Ledger Setup".

I don't know why MBS have removed the field from the form, but it works.

Smashed_Pumpkin

Hi,

I've already looked into that, and it only affects the discount amount, not the VAT calculation. What we want to do is calculate VAT on the invoice value after deducting the settlement discount.

jsrark

Check the system parameters, works fine on Attain 3.70

Smashed_Pumpkin

Forgot to set a VAT Tolerance % in the General Ledger setup options. With this field filled in the VAT calculation works as we want it to.

drieszen

But what happens if the customer is not paying on the tine?

In that case the VAT is based on the line amount - payment discount, and that is not correct. Does anyone has a solution for this?

Smashed_Pumpkin

Doesn't matter if they are paying on time or not, at least not in the UK:

The VAT Act 1994 Schedule 6, Para 4 states:

"Where goods or services are supplied for a consideration in money and on terms allowing a discount for prompt payment, the consideration shall be taken for the purposes of section 19 as reduced by the discount, whether or not payment is made in accordance with those terms."

Magno

Hi, in our version, checking or unchecking the field "Pmt. Disc. Excl. VAT" in General Ledger setup doesn't change anything. version = BE 3.10.A
Anyone an idea?

rsfairbanks

Have you got a VAT Tolerance %. We seemed to need this as well.

Magno

hi,

i just compared the world version with the belgian version, in the development toolkit and it seemed they deleted for some reason the code to check that value, now it works again.

Thanx anyway