Small and medium business | Business Central, N...

Is NAV 2018 able to automatically calculate tax for purchase journal line

(0) Share

Report

Posted on by Jun Wang

8,188 Super User 2025 Season 2

Hi Experts, Does NAV automatically calculate tax on purchase journal line. I filled out the tax area code and tax liable but the tax amount remain zero.

I have the same question (0)

All responses (8)

Answers (0)

Suggested answer

DAnny3211 11,389 on at

Like (0)

Report

RE: Is NAV 2018 able to automatically calculate tax for purchase journal line

hi

Dynamics NAV can automatically calculate tax on purchase journal lines if the necessary setup has been done.

Here are some things you can check:

Check the Tax Area Code setup - Make sure that the Tax Area Code has been set up correctly and linked to the relevant Tax Group, Tax Jurisdiction Code, and Tax Type.

Check the Vendor setup - Ensure that the vendor has the correct Tax Area Code assigned to their record.

Check the Purchase Journal Line - Make sure that the Tax Liable field has been set to Yes, and that the Tax Area Code field has been populated correctly on the Purchase Journal Line.

Check the Tax Setup for the Vendor Ledger Entry - Go to the Vendor Ledger Entry related to the Purchase Journal Line, and check that the Tax Liable field is set to Yes, and that the Tax Area Code has been populated correctly.

If everything is set up correctly, the tax should be automatically calculated when you enter a purchase journal line. If the tax amount remains zero, you may need to check the tax setup or contact your system administrator for assistance.

DAniele

Was this reply helpful? Yes No
Suggested answer

YUN ZHU 93,438 Super User 2025 Season 2 on at

Like (1)

Report

RE: Is NAV 2018 able to automatically calculate tax for purchase journal line

Hi, I checked the standard code of BC, I think NAV2018 may be the same. First only if Gen. Posting Type is Purchase, the tax is automatically calculated.

Then there is another important point, if Account Type is Customer, Vendor or Bank Account, Gen. Posting Type must be empty.

So if the Account Type is G/L Account, the tax can be calculated automatically.

Hope this can give you some hints.

Thanks.

ZHU

Was this reply helpful? Yes No
Jun Wang 8,188 Super User 2025 Season 2 on at

Like (0)

Report

RE: Is NAV 2018 able to automatically calculate tax for purchase journal line

Hi Zhu, thanks for the response and the digging. It calculates VAT but doesn't calculate based on tax area code.

Was this reply helpful? Yes No
Suggested answer

Bilal Haider 408 on at

Like (1)

Report

RE: Is NAV 2018 able to automatically calculate tax for purchase journal line

Can you check if Tax setup, calculation type, tax % and other setup is done properly.

Was this reply helpful? Yes No
Suggested answer

YUN ZHU 93,438 Super User 2025 Season 2 on at

Like (1)

Report

RE: Is NAV 2018 able to automatically calculate tax for purchase journal line

Hi, as mentioned by Bilal, please check the settings below.

https://learn.microsoft.com/en-us/dynamics-nav-app/localfunctionality/mexico/how-to-set-up-use-tax-and-purchase-tax

Hope this helps.

Thanks

ZHU

Was this reply helpful? Yes No
Jun Wang 8,188 Super User 2025 Season 2 on at

Like (0)

Report

RE: Is NAV 2018 able to automatically calculate tax for purchase journal line

HI I managed to make it work by checking the following.

1/ overall the tax setup is correct

2/ the GL account needs to be set up as taxable group in spite of the vendor is set up as taxable on vendor card. I assume GL account take priority over vendor card.

3/ there is some interplay between the tax liable flag and use tax flag. checking off either or both in certain order cause tax not calculating. The use tax needs to be No.

4/ after changing setup, user needs to delete the line and repopulate to make NAV pick up the changes.

thanks everyone for the help.

Was this reply helpful? Yes No
Suggested answer

Jun Wang 8,188 Super User 2025 Season 2 on at

Like (0)

Report

RE: Is NAV 2018 able to automatically calculate tax for purchase journal line

thanks

Was this reply helpful? Yes No
Suggested answer

Jun Wang 8,188 Super User 2025 Season 2 on at

Like (0)

Report

RE: Is NAV 2018 able to automatically calculate tax for purchase journal line

how to make Bilal and your the suggested answer? I clicked on the Yes, but system says

Was this reply helpful? Yes No