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23,616Hi
I have an issue with prepayments when we are dealing with EU suppliers and the VAT return. The process leads to an imbalance in Tax to EU Vendors and the offset, and critically a wrong tax return being submitted to the government.
In Summary –
- You can do a prepayment in AX by selecting the prepayment voucher field in the payment journal.
- If the setup is defined then the VAT will be calculated on the prepayment and posted with the
payment journal. - Once the prepayment is then allocated to an actual invoice the prepayment postings will be reversed
and the VAT will move from the GL account code for prepayment VAT to the normal VAT code. - This works fine for Domestic suppliers.
- The issue is that with EU suppliers the VAT on a normal invoice is posted as Dr and Cr to be defined
as EU and appear twice on the VAT return. This functionality does not work with prepayments. - Using EU VAT and prepayments – the GL entries are incorrect and are leaving a balance in the
prepayment account.
I have logged it with Microsoft and they can reproduce it on AX2012 R3 CU10 but they state EU VAT and prepayments is an unsupported process scenario and they will not be doing anything about it. I know it is prepayments and I know it is the difference between a working Domestic process (that is fine) and then the EU reporting. Just wondering if anyone else in Europe has come across this.
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