Dynamics Community Forum Thread Details

Good day All

If someone could assist here that would be appreciated. I have a query around the Vat Settlement date options and closed financial perids. Here is my situation.

The January financial period is closed for posting but the Vat Settlement has not yet been filed with the revenue services for the Jan month.

A late Jan vendor invoice is received and posted with a GL Posting date of Feb and a Vendor Document date of Jan - this will allow for the Vendor aged report to be correct. It is not an option to allow the Jan GL finanical period to be open again for any late capture.

In doing the Vat Settlement and Calc for the Jan month, the Starting Date and Ending Date refer to the GL Posting date. By using 1 Jan to 31 Jan, this late invoice captured in Feb with a Feb GL Posting date is missed. I cannot include any posting dates in Feb as I am doing the Jan Vat settlement.

Has anyone worked a way around this particular situation please?

Your ideas and suggestions would be appreciated

Regards

Marmeduke8

Marmeduke,

Here is an overview of Calc. and Post your VAT Settlement:

How is VAT Recorded? Whenever we post a trade transaction (i.e. a Sale or a Purchase) in Business Central – the system records VAT for us automatically. In addition to the General Ledger (Chart of Accounts) postings, VAT is recorded in its own ledger called the VAT Entry table. Entries in the VAT Entry table are classified by the business type and the product (or service) type involved in the trade. In Business Central these types are (respectively) known as the VAT Business Posting Group and the VAT Product Posting Group. For every combination of business and Product posting groups, the system defines the VAT settings (in the VAT Posting Setup). The setup included the VAT%, the General Ledger Accounts and other required properties… Along with the tax point date (aka the Posting Date) and the amounts, the VAT Entry table faithfully captures details of all the Input and Output VAT for us.

How VAT is Posted to General Ledger?

It is normal to practice – when recording VAT amounts in General Ledger – to separate the VAT incurred (for VAT amounts not yet reported) from VAT which is payable (for VAT amounts that have been reported). VAT Incurred (and posted to General Ledger as a part of the trade posting) is initially recorded to the configured accounts in the VAT Posting Setup (being either P&L or Balance Sheet accounts, depending on the accounting preference). However once reported the VAT amounts due should be clearly stated on the balance sheet as a liability to (or a reclaim from). As such VAT Reporting is typically followed by a journal to move amounts from incurred to the payable G/L Accounts (referred to as the VAT Settlement Account in Business Central).

How is VAT Reported?

Having considered how VAT is recorded by Business Central (in the VAT Entry table and General Ledger) it then follows how it may be reported. The VAT Return is a summary of Trade amounts for Base (net) amounts and the VAT (for both inputs and outputs) over a period – subtotaled and are taken from the figures in the VAT Entry table.

- The VAT Return figures are calculated simply as a summary of VAT Entry for the period, subtotaled by the VAT Business and VAT Product Posting Groups. This subtotaling is performed in Business Central by what is called the VAT Statement (the VAT Statement is a worksheet with subtotal formula configured for the business when the system is set up). Once the VAT Return is Submitted the figures are regarded as final (and may not be easily altered or recalled). Two further beneficial actions remain. First, a General Ledger Posting is required to journal the reported VAT incurred amounts as a VAT Payable amount. Second, a to “mark” the reported VAT Entries for the period as reported (or Closed) is helpful. This allows us to handle backdated transactions. In such cases it is a big help to have marked which entries we have already reported (as Closed) as we require more than the date to handle this scenario in the following period. The Calc. and Post VAT Settlement routine performs both additional tasks for us. It:

- Posts a system Journal to move the incurred VAT for the period as a summary figure to the VAT Liability account (aka VAT Settlement) account.

- And marks the VAT Entries in the reporting period as Closed.

To be of the greatest benefit the Calc. and Post VAT Settlement should be performed straight after VAT Return is Created and Submitted (and specifically before we have attempted any backdated trade postings).

Summary of Calc. and Post VAT Settlement Batch Job:

Open the Calc. and Post VAT Settlement window.
Closes open VAT entries and transfers purchase and sales VAT amounts to the VAT settlement account.
For every VAT posting group, the batch job finds all the VAT entries in the VAT Entry table that are included in the filters in the definition window.
When the VAT entries are closed, the Closed field in the VAT Entry table is marked. The entry number of the settlement entry that has closed the entry is inserted automatically in the Closed by Entry No. field. This happens only when the amount must be transferred between general ledger accounts.
When a VAT amount is transferred to the VAT settlement account, the account for purchase VAT is credited and the account for sales VAT is debited with the amount from the VAT statement period. The account numbers are found in the VAT Posting Setup table. The account for VAT settlement is credited with the net amount. If the purchase VAT amount is larger, it is debited.
You can use the batch job either to start the posting process or to print a test report.
The posted entries are assigned the dimensions from the general ledger accounts they are posted to.

Options

Starting Date - Enter the first date in the period from which VAT entries are processed in the batch job.
Ending Date - Enter the last date in the period from which VAT entries are processed in the batch job.
Posting Date - Enter the date on which the transfer to the VAT account is posted. This field must be filled in.
Document No. - Enter a document number. This field must be filled in.
Settlement Account - Select the number of the VAT settlement account. Select the field to see the chart of account. This field must be filled in.
Show VAT Entries - Select if you want the report that is printed during the batch job to contain the individual VAT entries. If you do not choose to print the VAT entries, the settlement amount is shown only for each VAT posting group.
Post - Select if you want the program to post the transfer to the VAT settlement account automatically. If you do not choose to post the transfer, the batch job only prints a test report, and Test Report (not Posted) appears on the report.
Show Amounts in Add. Reporting Currency - Select if you want report amounts to be shown in the additional reporting currency.

Hope this all helps.

Thanks,

Steve

Vat settlement-Doc date vs Posting date

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