Should VAT be included on Purchase Orders in Business Central?

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Posted on by MB-22100407-0

Hi Community,

I have set up VAT in Dynamics 365 Business Central, and I noticed that when I create a Purchase Order (PO), the system calculates VAT automatically in the background based on the VAT Posting Groups.

My question is:

Should VAT amounts be shown on the Purchase Order document (sent to vendors), or is it best practice to keep the PO amounts excluding VAT and only show VAT on the Purchase Invoice?

If I want to include VAT on the PO report, is it recommended to customize the standard PO layout, or is there a configuration option that I might be missing?

I want to make sure we are following best practices both in terms of system setup and accounting/legal compliance.

Thanks in advance for your guidance!

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Dynamics 365 Business Central

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Alex A 2,455 on at

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Should VAT be included on Purchase Orders in Business Central?

It may be two different departments at your vendor(s) for who sees the Purchase Order and who gets the actual Purchase Invoice.

So, I think it's up to whether the vendor(s) needs to see the VAT on the Purchase Order? Usually the system works well in this regard as is, by default (out of the box).

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