Creating a Purchase Invoice with different VAT rates

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Posted on by JonnyP

Hello All,

I am trying to create a Purchase Invoice with two lines, with different VAT rates applied.

Line item 1 should have a VAT applied at 20% - using VAT Prod Posting Group - STANDARD

Line item 2 should have VAT applied at 5% - using VAT Prod Posting Group - REDUCED

e.g.

Item	Cost ex VAT	VAT	INC VAT
Item 1031	100	20%	120
Item 1032	100	5%	105

Total Ex VAT = 200

Total VAT = 25

Total Inc VAT = 225

If I add just one of the line items it uses the different VAT rates as you'd expect. However when I add the second line the VAT rate applicable to that line is then used for the whole invoice, instead of treating each line individually.

How can I achieve the desired result in the example above? Am I missing a setting somewhere?

Thanks in advance.

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Community Member on at

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Hello,

This is possible as long as you have your VAT Prod. Posting Group and VAT Business Posting Group setup and mapped. Here is my example:

Not that my Vendor has a VAT Bus. Posting Group of EU so make sure the relationship is setup:

Hope this helps.

Thanks,

Steve

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Muhammad Zaid 286 on at

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Hi Jonny,

You need to change the VAT prod posting group on line level. Please see the below screenshot for your reference.

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JonnyP 25 on at

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Thanks for the answer, I think I have my VAT Prod. Posting Group and VAT Business Posting Group setup and mapped, pretty much as per D365BC standard setup.

I've tried this on Cronos and get the following result which is what I would expect, using STANDARD @ 20% and REDUCED @ 5%

When I do something similar on my real company I can add a single line with the reduced rate and it reflects the 5%:

But when I add a second line with the standard rate it applies the 20% to both lines, overriding the 5% on the first line (no: 1020):

Any ideas why the lines individual VAT Prod Posting Groups are being ignored?

Thanks in advance

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JonnyP 25 on at

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Thanks Muhammad, I've tried this but it doesn't seem to work for my setup, see response to Steven's answer

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Community Member on at

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Hello,

That is strange and not what I expect. I would recommend asking your Partner to submit a support ticket to Microsoft so a technical developer can review. This could be a bug in the GB version.

Thanks,

Steve

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JonnyP 25 on at

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Thanks Steve, I'll get in contact with our Partner

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