Skip to main content

Notifications

Announcements

No record found.

News and Announcements icon
Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Two VAT rates on one i...
Finance | Project Operations, Human Resources, ...
Suggested answer

Two VAT rates on one invoice with purchase order

(1) ShareShare
ReportReport
Posted on by Community member 6
Hi,
 
I often receive invoices with two VAT rates on them.
Example, invoices with £10k zero rated and then £4k standard 20%.
We use purchase orders in our business, so matching them up to one invoice line is proving difficult.
 
Is there a way to split the VAT amounts on one invoice line, or do you need two ?
 
If you need two, then the PO has to have two lines also, which is not always the case.
 
I know there is a VAT adjustment option, but what effect does this have on VAT code reporting, ie would the full invoice amount show as only one VAT code ?
 
Any help is appreciated.
 
Thanks,
 
Ray
  • Suggested answer
    BillurSamdancioglu Profile Picture
    BillurSamdancioglu 15,786 Most Valuable Professional on at
    Two VAT rates on one invoice with purchase order
    Hi,
     
    You may not be able to do by OOB functionality.
    So you may ask for this functionality from Ideas Portal.
  • Community member Profile Picture
    Community member 6 on at
    Two VAT rates on one invoice with purchase order
    Hi gaurang,
     
    I have invoices that come in, such as consultancy or aeronautical related invoices that are split between zero rated & standard.
     
    So when raising a PR, we may know the total amount of the works to be completed, but we will not know the VAT split until we receive the actual invoice.
    This is why I think it is hard to have the two lines on the PO as no split is confirmed until invoiced.
     
    Thanks,
     
    Ray
  • Suggested answer
    Gaurangkumar Jani Profile Picture
    Gaurangkumar Jani 4,480 User Group Leader on at
    Two VAT rates on one invoice with purchase order
    Hi there,
     
    Can you provide me some examples why you have 2 rates for the same PO Line?
     
    For system to work you need to have 2 different lines of item to calculate different Tax rates of each line.
     
    Thanks,
    Gaurang
  • andreasraithel Profile Picture
    andreasraithel 4,823 Super User 2024 Season 2 on at
    Two VAT rates on one invoice with purchase order
    Hy,
     
    you need to have two lines (on PO and Invoice), each line has it's item tax code either "no tax" or "full tax".
     
     
    Hope this helps.

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

December Spotlight Star - Muhammad Affan

Congratulations to a top community star!

Top 10 leaders for November!

Congratulations to our November super stars!

Tips for Writing Effective Suggested Answers

Best practices for providing successful forum answers ✍️

Leaderboard

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 291,269 Super User 2024 Season 2

#2
Martin Dráb Profile Picture

Martin Dráb 230,198 Most Valuable Professional

#3
nmaenpaa Profile Picture

nmaenpaa 101,156

Leaderboard

Featured topics

End-of-life Announcement for Microsoft Dynamics GP

Product updates

Dynamics 365 release plans