Prepayment AP Invoice with Zero VAT

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Posted on by Samantha73

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Hi All

When creating a prepayment invoice with zero VAT as below an error pops up:

he Prepayment account is assigned to a VAT product posting group where the VAT percentage is not equal to zero. This can cause posting errors when invoices have mixed VAT lines. To avoid errors, set the VAT percentage to zero for the account.

As the error says I can change the prepayment GL account VAT group to zero but then when I have a prepayment invoice WITH VAT it doesn't work. So the question is , is there a system to setup prepayments so both with and without VAT work? This EU localisation

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moh_rizkimaulana on at

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Hi Samantha,

I don't really know how EU works, but just to share how to make the prepayment work with and without VAT on W1 version.

First, if we refer to the example of Chart of Account (CRONUS), there are multiple Prepayment Accounts based on the VAT% (e.g. VAT 0 and VAT 10).

We also need to create multiple General Posting Setup (incl. Gen. Prod. Posting Group), then assign the Prepayment Account based on the VAT%.

If we use it for "Charge (item)", then we need to create multiple "Charge (item)" with different Gen. Prod. Posting Group, to differentiate the posting to the prepayment account.

sorry, the picture is NAV screen, but still works the same in BC on-prem or even BC Cloud 18.3.

Hope you will get the right solution soon.

Thank you.

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Community Member on at

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Samantha,

Did you get your issue resolved?

Thanks,

Steve

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Samantha73 3,299 on at

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Hey Steve

Well there is no way to have one item code with VAT and without VAT so setup two item codes and 2 prepayment GL accounts. To me prepayments in BC overly complicated for what it is..Hopefully future release will address with a new module that can handle prepayments and reserve invoices

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