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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Adjusting VAT on cash ...
Small and medium business | Business Central, N...
Answered

Adjusting VAT on cash receipt journal

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Posted on by INITMAN 100

Hello

I am posting a cash receipt journal for a refund that is non VAT.

However, BC is calculating the receipt as VAT inclusive.

I can remove the VAT element by allowing VAT differences and simply deleting the VAT element. However, this still shows as a VAT transaction, although with no VAT. This is technically incorrect.

is there a way i can change the VAT grouping from standard to Zero rating from within the journal line?

Thanks

  • Suggested answer
    JAngle Profile Picture
    JAngle 159 on at

    On the batch you can turn off VAT. The “Copy vat setup to jnl. lines” will solve this.

  • INITMAN Profile Picture
    INITMAN 100 on at

    Hi

    Thank you for the response.

    The above solution will not solve the problem. It does remove the VAT, but will not change the vat category.

    In the UK we have the following categories: Exempt expenses, Zero Rated expenses, Reduced rate and standard rate amongst others.

    The only other solution I can think of is to set up cash receipts for each category posting to a different VAT group?

    Are there any other solutions you can suggest?

    Thank you

  • Suggested answer
    JAngle Profile Picture
    JAngle 159 on at

    The vat product posting group defines the treatment. Change it to determine how you want the posting to be

  • Suggested answer
    INITMAN Profile Picture
    INITMAN 100 on at

    Yes, Thank you,

    I added it to my journal line, allowing me to choose the required VAT posting.

    Thank you so much for being so helpful

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