Hello Experts!
D365FO / 10.0.9 / Update33
I phase the problem that on project invoices the agreed customer retention (e.g. 10%) is calculated on the net value shown on the invoice and posted on a separate account.
Unfortunately the VAT is then calculated on the reduced amount (i.e. 90%) => similar to a rebate. This is tax wise not correct since VAT (in our case) needs to be posted/declared in the month the service was rendered/delivered.
When I use the function "Request retained amount" VAT is calculated on top of the retained amount => so practically VAT would be paid 3 years too late (this is the time a retention could be held back by the customer)...
A customer payment retention should be be reflected on the accounts payable only since it is a cash issue => in my example I phase three problems:
=> VAT should be calculated on the full service value invoiced
=> retention needs to be calculated on the gross amount
=> last but not least when reclaiming/receiving the retention from the customer three years later no VAT is posted (only if the customer keeps the cash...)
Mathematically, funny enough, the result on accounts payable for the customer is the same the only "stupid" is tax authority:
|
"wrong" |
"correct" |
|
| net service amount |
1.330,00 |
1.330,00 |
|
| retention 10% |
-133,00 |
|
|
| |
1.197,00 |
1.330,00 |
|
| VAT 20% |
239,40 |
266,00 |
-26,60 |
| subtotal |
1.436,40 |
1.596,00 |
|
| retention 10% |
|
-159,60 |
|
| payable |
1.436,40 |
1.436,40 |
|
Thanks for a potential answer/hint.
Best regards,
Robert
