Our Dynamics Finance System is set to use main account codes as spend categories, and project numbers as cost centers.
We are generating purchase orders using spend category, assigning qty, value and nett price (but without any VAT). After approval, the Purchase order gets sent to the vendor to fulfil. There is no tax or VAT cited on the PO. A Goods Received Note is present ready for the arrival of the goods ordered.
One thing we usually then do, on receipt of the vendor invoice, is to ask Dynamics to generate an invoice template based on the GRN. We can then add VAT rates to each line, and can then match the gross values on each line to the invoice we received. Select the matches and voila - payment issued.
The problem we have is that when the PO is first created, it is assigning a default VAT amount to each line. This is commonly different to the VAT actually due to be paid on each line. VAT amount will vary by product type as well as by the geographic location of the vendor (20% if in country, 0% outside). Hence the match process consistently fails.
Is there any way to get the PO nett value to get grossed up by the VAT rate code/percentage entered into invoice template, rather than the arbitrary default value entered by the system at time of PO creation?
Ian W.
