VAT Reposting in General Journal

VAT reposting in a foreign currency on the general journal line is done automatically during its posting.

Note

Due to the standard system Business Central operation, VAT reposting cannot be made on journal lines with account type Customer/Vendor. To enter a journal line for customer/vendor transaction, enter a journal line with account type G/L Account, and then balance it with the corresponding opposite account type or enter a second journal line with the appropriate account type.

Defining Vendor as entity for which VAT reposting is to occur

To define a vendor as an entity for which VAT reposting is to occur:

1. Select the search icon in the upper right corner of the Business Central system, then enter Vendors and click the link.
2. Search and select the vendor you want to define as an entity for which VAT reposting is to occur.
3. Go to the card of the selected vendor.
4. In the Invoicing - Posting Details section, select the Local currency value in the VAT Reposting Type field.

Defining Customer as entity for which VAT reposting is to occur

To define a customer as an entity for which VAT reposting is to occur:

1. Select the search icon in the upper right corner of the Business Central system, then enter Customers and click the link.
2. Search and select the customer you want to define as an entity for which VAT reposting is to occur.
3. Go to the card of the selected customer.
4. In the Invoicing - Posting Details section, select the Local currency value in the VAT Reposting Type field.

VAT Reposting in General Journal

To enter a general journal line that fulfills the conditions for VAT reposting:

1. Select the search icon in the upper right corner of the Business Central system, then enter General Journals and click the link.
2. Select the journal batch from the list that you want to work with.
3. Enter a journal line that fulfills the conditions for VAT reposting:
   1. Select the value G/L Account in the Account Type field, and then select the appropriate account number in the Account No. field.
   2. Select the foreign currency code in the Currency Code field.
   3. Select the appropriate posting type in the General Posting Type field.
   4. Enter the amount in the Amount field.
   5. Select the appropriate value in the VAT Posting Type field.
4. Go to the Line tab and select the option VAT - Additional Information, then fill in the VAT bus. posting group and VAT prod. posting group and other required values for VAT.

To verify the VAT reposting in the general journal by posting preview:

1. Go to the selected general journal batch for which you want to verify the VAT reposting result.
2. Click the button on the action bar Posting Preview.
3. Review the entries of the vendor/customer ledger entry, which should indicate the VAT base amount in foreign currency and the VAT amount in local currency.