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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Prepayment VAT error
Small and medium business | Business Central, N...
Suggested Answer

Prepayment VAT error

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Posted on by zj95 90

Good evening,

I am facing an error with prepayment.

When i try to preview or post the prepayment invoice, I am greeted with the following error: "

The Prepayment account is assigned to a VAT product posting group where the VAT percentage is not equal to zero. This can cause posting errors when invoices have mixed VAT lines. To avoid errors, set the VAT percentage to zero for the account."

Does anyone have an idea on what this error message represents? Have read on some forums is a bug, other than that no other information on it. 

This is the setup on the G/L account that is tagged to the purchase prepayment portion of the General posting setup:

pastedimage1624199225677v1.png

Vat posting groups as shown:

pastedimage1624199279476v2.png

Have tried deleting the fields on the G/L account and/or changing it to a posting setup with 0% VAT but still to no avail.

Would appreciate any help. Thank you.

Best regards,

ZJ

  • Suggested answer
    JAngle Profile Picture
    JAngle 159 on at

    The message states it “can” cause errors with “mixed” vat lines. If you’re setting all the lines to 0 then surely it’s not mixed and is unlikely to be a problem. Test it out to be certain

  • zj95 Profile Picture
    zj95 90 on at

    In my country we have a default vat of 7%, therefore it's not practical for me to set my vat to 0% every time.

  • Muhammad Zaid Profile Picture
    Muhammad Zaid 286 on at

    Hi zj95,

    Can you please share invoice line items and VAT prod posting group which applied on those items.

  • zj95 Profile Picture
    zj95 90 on at

    pastedimage1624205848566v1.png

    Hi Zaid,

    this is the line item. The vat prod posting group is as follow:

    pastedimage1624205893223v2.png

    pastedimage1624205913670v3.png

    Thank you for your help.

    Best regards,

    ZJ

  • Suggested answer
    Muhammad Zaid Profile Picture
    Muhammad Zaid 286 on at

    Please remove VAT prod posting remove from GL account card/master (Prepayment account) and try to preview posting again.

  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 307,166 Super User 2026 Season 2 on at

    Hi ZJ,

    As a follow up, can you tell us if your question was answered or is your question still open? If the answer(s) provided did help you, please mark them if it answered your question, so the post will get the status verified. This would help other community members which will be then directed to the correct replies.

    If you need more help please update with a reply.

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