The above screenshot shows the details of the VAT transactions created when posting a free text invoice and two supplier invoices. The VAT current is GBP and the company and reporting currency is USD.
Exchange rates are loaded on a monthly basis at the end of each month.
In this example we have an exchange rate loaded at the 31st August of GBP vs USD of 1.2960
The free text invoice and supplier invoices posted on the 1st And 2nd of September use this rate as at this point this is the most current rate in the system
On the 30th September the GBP vs USD rate for September month end is loaded 1.3100 and then the VAT payment process is run.
For the Supplier invoice transactions the VAT payment voucher takes the original GBP values posted on the invoices and converts them to USD using the latest September month end rate. So after posting the VAT payment journal the VAT GL accounts for Supplier invoices (accounts 13620 and 13623) have a Nil balance in GBP and a small balance in USD representing the difference in exchange rate from 1.296 to 1.31
For the Customer invoice the logic applied by AX is different. In this case the VAT payment voucher takes the USD value of the original FTI Invoice posting (USD 3,110.40) and converts it back to GBP using the new 30th September rate. So gives a GBP value of 2,374.35.
Therefore we have the original VAT payable of GBP 2,400 but the clearing entry in the VAT payment journal is different at GBP 2,374.35. So we end up with a Balance in the VAT payable account (22020) of GBP 25.65.
As a result of this the credit to the VAT clearing account (account 13629) in GBP is different to the VAT report that is generated when we run the VAT payment process.
VAT report shows a net payable position of GBP 2,150 but the credit to the VAT clearing account in the GL is GBP 2,124.35
The requirement is to have the original VAT transaction currency amounts (ie GBP) transfered to the VAT payment account at month end as per the original transactions.
is there a way to acheive this? Why is the VAT payment logic different for Customer invoices versus Supplier invoices.
Kind regards
Peter Mawson
