Skip to main content

Notifications

Announcements

No record found.

News and Announcements icon
Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Reverse a VAT posting ...
Finance | Project Operations, Human Resources, ...
Answered

Reverse a VAT posting to get VAT posting to the original account using general journal -

(0) ShareShare
ReportReport
Posted on by Kristina K 270
Hello!

I am facing an issue when I want to manually adjust a sales invoice using general ledger and not the credit invoice function. 

Financially the posting showing is correct, but I want to get the VAT reversed and posted to the same main account as the original one, that is to be posted on 2611 instead of 2641.

The main reason for wanting the credit to be posted to the original vat account is that we want to reconcile the total of 3011 to have 25 % VAT entered on account 2611. If the credit posting goes to 2641 then there will be a discrepancy. 

 
Original postingAccount DebetAccount CreditAmount
(AR)
1519
 
 10000
VAT Payable (25 %) 26112000
Sales account 30118000
    
    
Posting reversed in system   
Original 151910000
VAT Receiveable (25 %2641 2000
Sales account3011 8000
 
I have seen the legal entity override and I wonder if this would be a solution?
Can the sales tax direction be used in any way?

I want to have VAT sales payable direction in also the credit posting. 

 
 
  • Verified answer
    BillurSamdancioglu Profile Picture
    BillurSamdancioglu 15,811 Most Valuable Professional on at
    Reverse a VAT posting to get VAT posting to the original account using general journal -
    What I do in these kind of cases is to create an additional sales tax group and define related accounts for the reversal transactiosns.
  • Suggested answer
    Kevin Xia Profile Picture
    Kevin Xia Microsoft Employee on at
    Reverse a VAT posting to get VAT posting to the original account using general journal -
    Hi,
    you can manually adjust a sales invoice using the general ledger and control the VAT posting by configuring the sales tax direction. To achieve your specific requirement, follow these steps:

    Legal Entity Override:

    • The legal entity override may not directly solve your issue. It primarily deals with transactions that involve multiple legal entities. In your case, it seems like you're trying to handle everything within a single legal entity.

    Sales Tax Direction:

    • The Sales Tax Direction plays a crucial role in determining how the system handles tax transactions. You can check and configure the sales tax direction associated with the sales tax codes involved.
    • If the Sales Tax Direction is not helping in achieving your goal, you might need to consider other options.

    Manual Adjustment:

    • If the standard functionality does not meet your requirements, you might need to resort to manual adjustments using a General Journal.
    • Create a General Journal entry to reverse the original VAT posting and manually specify the VAT Payable (25%) account (2611) for both the debit and credit entries.
    Best regards,
    Kevin
  • Suggested answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 291,602 Super User 2024 Season 2 on at
    Reverse a VAT posting to get VAT posting to the original account using general journal -
    Hi Kristina,
     
    I do assume, you created and posted a general journal when you mention "using general ledger"? If not, please elaborate how you posted the reversal.
     
    You can indeed set another tax direction or try to use negative amounts in the debet and credit columns. You can test these two options in a sandbox environment.

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Congratulations 2024 Spotlight Honorees!

Kudos to all of our 2024 community stars! 🎉

Meet the Top 10 leaders for December!

Congratulations to our December super stars! 🥳

Get Started Blogging in the Community

Hosted or syndicated blogging is available! ✍️

Leaderboard

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 291,602 Super User 2024 Season 2

#2
Martin Dráb Profile Picture

Martin Dráb 230,340 Most Valuable Professional

#3
nmaenpaa Profile Picture

nmaenpaa 101,156

Leaderboard

Featured topics

End-of-life Announcement for Microsoft Dynamics GP

Product updates

Dynamics 365 release plans