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Small and medium business | Business Central, N...
Suggested Answer

VAT Tolerance

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Posted on by 28
I wonder if anyone can advise of other things to look for when getting an error amending a vat amount in the statistics on a draft purchase invoice.  I can do in the Cronos company but not the product company yet the settings to allow vat difference on purchase & payables and the vat tolerance settings in the general ledger setup are the same.   It is an invoice in local currency (GBP) and within tolerance (this is set to £1 and I am trying to reduce the vat by 0.01).    The VAT field is editable but I get an error saying the change isn't within tolerance and it shows vat tolerance = 0.00 so it is like it is seeing this setting somewhere else other than general ledger setup.   Any suggestions on what may be the missing link here gratefully received.
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  • Suggested answer
    OussamaSabbouh Profile Picture
    12,878 Super User 2026 Season 1 on at
    Hello ,
     
    If BC shows VAT tolerance = 0.00 even though G/L Setup allows it, the missing link is almost always outside General Ledger Setup. Check that Allow VAT Difference = Yes is enabled in the VAT Posting Setup used on the invoice and in the Vendor Posting Group—either one being off makes tolerance effectively zero. Also verify the invoice uses a single VAT Posting Setup, Prices Incl. VAT = No, and that VAT rounding precision in Currency setup isn’t blocking a £0.01 change. Cronus works because these flags are enabled everywhere by default; product companies usually miss one of them.
     
    Regards,
    Oussama 
  • EK-23122104-0 Profile Picture
    28 on at
    Hi
     
    That is great thank you, found it.   I was looking at "currencies" and trying to see what might be wrong but couldn't see until I viewed the complete currency card.  There was a vat tolerance of 0.00 even though my general settings showed a tolerance level.   

    Thank you :)
  • Suggested answer
    YUN ZHU Profile Picture
    99,084 Super User 2026 Season 1 on at
    Hi, hope the following can give you some hints.
    How to adjust the VAT amount in Dynamics 365 Business Central (VAT Difference)
     
    Thanks.
    ZHU

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