How to include VAT for pre-payment invoice amount?

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Posted on by Niki

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Hi,

I need to include the VAT amount when I posting purchase pre-payment invoice. When I enter pre-payment percentage, the system calculates the prepayment amount using Line.Amount Excl.VAT. Can you guide me to do

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Dynamics 365 Business Central

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KP - Solution Archi... 658 on at

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Hello,

There are fields available for prepayment in business central

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Niki 439 on at

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I need to enter the the pre-payment amount at the purchase order level. However, those fields are not editable. How can I make them editable?

Thank you so much for your consideration.

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Jainam M. Kothari 15,641 Super User 2025 Season 2 on at

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May this can help : https://learn.microsoft.com/en-us/dynamics365/business-central/finance-how-to-create-prepayment-invoices

https://yzhums.com/2056/

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Jun Wang 8,202 Super User 2025 Season 2 on at

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on a PO, you could set the below flag to yes. In the example, the price is 350, tax 21. The prepayment % is 50%. So the prepayment is calculated as 185.5. From the statistics page the tax amount shows zero, but it has been included.

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Niki 439 on at

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Hello @Jun Wang

Thank you for your consideration.

In my PO, I can see only the "Pricing Including VAT" flag. Is this the same as the flag you mentioned?

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Jun Wang 8,202 Super User 2025 Season 2 on at

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It's the same, just showing on different part of the header.

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KasparsSemjonovs 4,798 Super User 2025 Season 2 on at

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VAT for prepayment invoices are calculated based on the Prepayment G/L account card VAT Prod. posting group. Main one is the VAT Prod Posting group in the GL account (as the VAT Bus. Posting group is taken from Vendor)

So check the General Bus. and Prod. posting groups in the PO lines, then open General Posting Setup and for this combination find the Prepayment GL account indicated in the setup.
Then add the values in this G/L account card for the VAT Prod. Posting group.
After that might be You need to re-enter the prepayment percentage in the Purchase Order so it gets recalculated, but now the Prepayment should be with VAT.

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Niki 439 on at

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Hello,

Thank you for your assistance.

I have tested both methods recommended by Mr.@Jun Wang and Mr.@KasparsSemjonovs, and each allows us to post the pre‑payment invoice with VAT. I recognize that the optimal approach may vary depending on the specific circumstances. I would appreciate any guidance on which method is generally preferred.

Thank you again for your support.

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Khushbu Rajvi. 21,048 Super User 2025 Season 2 on at

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Adding more details:https://help.lscentral150.lsretail.com/Content/Dynamics%20NAV/finance-how-to-create-prepayment-invoices.html

https://bcdocs.staedean.com/md/en-US/finance-how-to-create-prepayment-invoices.md

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Gerardo Rentería Ga... 25,398 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

Posting Groups #11 – Prepayments Posting | Totovic Dynamics 365 Blog

Best Regards
Gerardo

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