Hi everyone,
I’m looking for insight from organisations that deal with non‑recoverable VAT and have to manage the accounting complexities that come with it.
In Business Central, VAT Posting Setup only allows non‑recoverable VAT to be posted to a separate G/L account, not to the same G/L account as the net amount. For many cost categories, this creates challenges because the true cost of the purchase (net + non‑recoverable VAT) ends up split across two accounts instead of being captured together.
I’d like to understand how other organisations are working around this. Specifically:
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Have you customised BC to allow posting the VAT to the same G/L as the net?
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Are you using dimensions, analysis views, or another method to keep reporting accurate?
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Is there a best practice I’m missing?
Any experiences, workarounds, or recommendations would be really helpful.
