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Hi everyone ,
Will appreciate your guidance whether D365 creates an accounting entry on for non recoverable VAT in expense management.
Customer requires system to automatically reverse the VAT recoverable assets when foreign VAT is not recoverable.
Hi Yasin,
You can setup which Tax group will be defaulted per country/region. If you ensure that there is no Tax group linked, then the full expense amount will be posted without VAT.
hi Yasin,
Unfortunately Expense management doesn't support that scenario to automatically create VAT non-recoverable tax financial entry because the "VAT tax recovery" workflow only ensure if a user made a mistake in data entry so that can be checked by approver but functionally it will not create any reversing VAT entry.
you can consider a small customization on "Expense tax recovery" screen workflow page, Create a button, call it "Non-Recoverable Tax Entry" if user select any expense number, that has "Not Recoverable" status, when user select that entry and click on this button, system should create a reversal of that entry. (Please note this solution will only work if you already know the tax on employee advance request that is non-recoverable)
How do you identify whether VAT is not recoverable?
Best regards,
Ludwig
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