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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Value added tax on Pre...
Supply chain | Supply Chain Management, Commerce
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Value added tax on Prepayment [customer orders] in retail point of sale

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Posted on by faiqakhushi 15

Hello,

I have a requirement from a customer that he wants to calculate VAT on prepayment from customers. Currently, they are creating a customer order on POS [Retail AX 2012  R3] and taking advance payment from customers. In back-office, an open sales order [with VAT]  is creating and a payment journal with a prepayment profile is also posted. Now customer wants that VAT should be applied on advance payment . 

I have marked Calculate VAT on prepayment in AR parameter , also mark price including sales tax check box on payment journal . VAT ledger account is also defined with prepayment profile.  When I create Customer Orders and process payment, the payment journal is not applying VAT . 

Please let me know if I am missing anything in setup? or if someone can suggest any solution?

Thanks,

Faiqa

  • WillWU Profile Picture
    WillWU 22,363 on at

    Hi faiqakhushi,

    Is this kind of voucher correct according to your country's tax regulations?

    Could you provide more details about your revenue recognition process?

  • faiqakhushi Profile Picture
    faiqakhushi 15 on at

    yes , actually its like advance payment against open Sales order. When customer do prepayment , related advance VAT should be calculated and when invoice posted for that SO then this advance VAT account will settle with actual VAT account same like prepayment settlement .

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