web
You’re offline. This is a read only version of the page.
close
Skip to main content

Notifications

Announcements

No record found.

News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / How to do VAT Adjustment?
Microsoft Dynamics AX (Archived)

How to do VAT Adjustment?

(0) ShareShare
ReportReport
Posted on by b_radlyjames 3,155

After running the 'VAT payments' functionality (and clicking 'Update'), we have successfully generated a VAT invoice against our VAT Supplier/Vendor (The Government).

After doing some checking of the data, we determined that the AX Generated amount is off by a small amount.  So what we are actually going to pay doesn't match what AX generated.

How do you go about doing a VAT adjustment?

*This post is locked for comments

I have the same question (0)
  • ZvikaR Profile Picture
    ZvikaR 168 on at

    Where do you observe the difference?

    Is the amount on the "payment report" does not match the amount on the voucher generated by Dynamics?

  • b_radlyjames Profile Picture
    b_radlyjames 3,155 on at

    No, those all match.  Basically my users are doing an 'Audit' and found that somebody did something incorrectly with a Customer which caused VAT to calculate incorrectly.

    So our total amount, although correct based on the information that AX had at the time, is off a little due to user error.

    We were just looking for a simple way to adjust the VAT.  Do we need to instead look at fixing the issue at the Customer level?

  • Suggested answer
    ZvikaR Profile Picture
    ZvikaR 168 on at

    To adjust VAT amount (what country is that for? clearly not the USA) you need to impact the specific sales tax code(s) that are impacted by the original error.

    I am assuming that you do not want or cannot reverse the original document (invoice) and re-enter it correctly.

    To adjust the VAT sub ledger the simplest way is to post directly into the VAT Code.

    You use the general journal form

    Line 1: Ledger (account where VAT is posted), sales tax code = sales tax code you want to adjust, credit/debit amount per what you want to adjust.

    Line 2: Ledger (offset account where the correction need to be impacting).

  • b_radlyjames Profile Picture
    b_radlyjames 3,155 on at

    Zvika,

    Thank you for the response.

    I finally have gotten more details from my accounting team.

    1. Customer was invoiced and charged VAT on the invoice.

    2. Customer should not have been charged VAT and therefore needed a credit of the VAT amount.

    3. Due to the situation they were in at the time (Long store... ...), they created a Journal to get that credit to the customer.

    4. The journal went from the 'Customer' to an offset account.  This is some sort of holding account. (NON VAT account).

    5. Now, we are trying to create a journal that will move the refund from that holding account into the proper VAT account.

    6. When adding in the 'VAT COde' on the 'General' tab, we get the following error:

    Ledger account [holding account] is not among the accounts in account group [Ledger Posting Group] that are used for VAT code [VAT Code]

    This does make sense as the holding account they are trying to use is not a VAT account specified in the 'Ledger Posting Group' we use.

    The question now is, how do I get the amount from the 'holding account' into the correct VAT account?

  • Suggested answer
    b_radlyjames Profile Picture
    b_radlyjames 3,155 on at

    I found the solution here.

    I needed to put the VAT account in the 'Account' portion and the non-vat account into the 'Offset account' and then do a debit.  That fixed the numbers in both accounts.

  • ZvikaR Profile Picture
    ZvikaR 168 on at

    yes, that's exactly what I meant by:

    "Line 1: Ledger (account where VAT is posted), sales tax code = sales tax code you want to adjust,"

    surprisingly this is a functionality many AX users are not aware of/do not use.

  • b_radlyjames Profile Picture
    b_radlyjames 3,155 on at

    You are exactly right.  I should have read that closer!

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

Responsible AI policies

As AI tools become more common, we’re introducing a Responsible AI Use…

Neeraj Kumar – Community Spotlight

We are honored to recognize Neeraj Kumar as our Community Spotlight honoree for…

Congratulations to the November Top 10 Community Leaders!

These are the community rock stars!

Leaderboard > 🔒一 Microsoft Dynamics AX (Archived)

#1
Martin Dráb Profile Picture

Martin Dráb 4 Most Valuable Professional

#1
Priya_K Profile Picture

Priya_K 4

#3
MyDynamicsNAV Profile Picture

MyDynamicsNAV 2

Last 30 days Overall leaderboard

Featured topics

Product updates

Dynamics 365 release plans