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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Prepayment Invoice Ta...
Small and medium business | Business Central, N...
Suggested Answer

Prepayment Invoice Tax Recognition Timing

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Posted on by Samantha73 3,241
Hi All
When using prepayments, the tax recognition happens when the prepayment invoice is created; when the final invoice is created, it only has values for the prepayment account and the sales account (Tax account gets DR/CR same amounts resulting in Net 0). Does this align with accounting rules?
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Dynamics 365 Business Central
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  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 95,249 Super User 2025 Season 2 on at
    Prepayment Invoice Tax Recognition Timing
    I did a quick test and it seems to be working fine. Could it be a problem with the posting group settings?
    Prepayment Invoice:
     
    Invoice:
     
    Thanks
    ZHU
     

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