Table of Contents

VAT Reposting on a Purchase Invoice

VAT reposting in a foreign currency on a purchase invoice is performed automatically during posting of the purchase invoice. Such a document must meet specific conditions:

  • The purchase invoice must be issued in a foreign currency.
  • The VAT bus. posting group and the VAT prod. posting group selected on the document, in the VAT posting settings, must indicate VAT Calculation Type Normal VAT.
  • The selected vendor must be defined as a party for which VAT reposting is to take place.

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 Search 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.

VAT Reposting on a Purchase Invoice

When entering a purchase invoice into the system that meets the conditions for VAT reposting, the system will automatically do the repost during its posting and no additional action is required. The VAT reposting effect can be verified in the posting preview and in the document statistics.

To verify VAT repost on a purchase invoice through the posting preview:

  1. Go to the purchase invoice for which you want to verify the result of VAT reposting.
  2. Click the button in the action bar Posting Preview.
  3. Verify the entries in the vendor ledger entry, which should indicate the amount of VAT base in the foreign currency and the amount of VAT in the local currency.

To verify VAT reposting on a purchase invoice through document statistics:

  1. Go to the purchase invoice for which you want to verify the result of VAT reposting.
  2. Click the button in the action bar Statistics.
  3. Verify the values in the rows of the document in the columns VAT Base Amount (PLN) and VAT Amount (PLN).
  4. Verify the accuracy of the values in the section VAT Calculation (Foreign Currency) in the document statistics window.