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Defaulting VAT Prod Posting Group for item with 2 possible VAT code choices

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Posted on by ploo

Hi experts,

I've a dilemma with setting up default VAT Prod Posting Group for items.

Generally, the item is sold locally, so the default should be something like VAT10.

However, the item is purchased from overseas and VAT/GST is out-of-scope (OS). If I have a large purchase order, it means having to manually update the VAT Prod Posting Group for each line from VAT10 to OS.

Does anyone know a better way to handle an item that has /two/ VAT Prod Posting Group depending on sales or purchase order?

Thank you

Peter

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Gerardo Rentería Ga... 26,091 Most Valuable Professional on at

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Hi

In the document you can change the VAT prod posting group of the item, if you do not see the field you can personalize it and make it visible.

BR

GR

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Gavin 2,510 on at

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Hi,

You can use different "VAT Business Posting Groups" on your Vendor/Customer to solve this.

See below:

In this example if my Vendor has a VAT Business Posting Group of EXPORT assigned and the item has VAT20 this calculates 0% VAT (point 2)

If the Customer (or Vendor) has a VAT Business Posting Group of DOMESTIC assigned and the item has VAT20 this calculates 0% VAT (point 2).

This is the power of Posting Groups :). You dont have to change the VAT Product Posting Group on the Item to have different outcomes of VAT.

I explain more about posting groups in this YouTube video :) https://youtu.be/qnhYf6s4pak

Hope this helps

Thanks

Gavin

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YUN ZHU 99,968 Super User 2026 Season 1 on at

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Hi, just adding some information.
If your domestic and overseas sales are from the same vendor, you need to use the method mentioned by gdrenteria to modify the VAT Bus Posting Group or VAT Prod Posting Group in the header or row.
If the vendors are not the same, they can be distinguished by defining different VAT Bus Posting Groups on the Vendor card as mentioned by Gavin.

Hope this helps as well.

Thanks.

ZHU

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