Hello,
1. Why does the error VAT posting setup does not exist occur when Gen. Bus. Posting Group and VAT Bus. Posting Group are left empty?
This error happens because Business Central requires a valid combination of VAT Business Posting Group (from the customer or sales document) and VAT Product Posting Group (from the item) to find the correct VAT Posting Setup. If the VAT Business Posting Group is left empty or missing, the system cannot identify which VAT posting to use for the product’s VAT product posting group, causing the VAT posting setup does not exist error.
2. What happens when you set Gen. Bus. Posting Group to Domestic on the item?
In Business Central, the Gen. Bus. Posting Group is typically set on the customer or vendor card, not on the item. Setting Domestic as Gen. Bus. Posting Group on an item is not standard and does not impact VAT calculation. VAT calculation depends on the VAT Business Posting Group on the customer and the VAT Product Posting Group on the item. The Gen. Bus. Posting Group mainly controls general ledger posting behavior and is not used to determine VAT.
3. What happens when a customer from another country orders, but the Gen. Bus. Posting Group is set to Domestic?
If the customer’s VAT Business Posting Group is incorrectly set as Domestic instead of reflecting their actual location, Business Central will apply domestic VAT rates to their orders. This can cause incorrect VAT calculation for international customers. To ensure correct VAT treatment, the customer’s VAT Business Posting Group must be set accurately (e.g., EU, Export) based on their tax jurisdiction.
4. How should you handle posting groups when syncing items from BC to Shopify, considering you only want one-way sync?
When syncing items from Business Central to Shopify, ensure that the VAT Product Posting Group on each item in BC is correctly set to represent the VAT category (e.g., 6% VAT). The VAT Business Posting Group and Gen. Bus. Posting Group should be set on the customer cards in BC, reflecting their location and tax status. This setup allows BC to calculate VAT correctly when orders come in, using the combination of customer VAT Business Posting Group and item VAT Product Posting Group. Since syncing is one-way (BC to Shopify), customer posting groups should be managed entirely within BC.
Hope this answer will help you!
Regards,
Mansi Soni
