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Prepayments in BC

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Posted on by AV-14111750-0

Hi all, I am trying to set prepayments in BC. The issue I have is that the Prepayment Purchase Invoice is picking up the VAT Prod Posting group from the G/L account I've set on The Gen. Post Group. How do I set, and what needs to be done so that Vat Prod Posting Group on the Prepayment Invoice is the same as the one I chose on the Purchase Order lines?

PART 2

I have done some tests now , so it is clear.
Just to clarify, my country is localized in Finland, so unlike Australia, I don't get the option to change the VAT Prod Posting Group on the line.
So, retested and came with the following conclusions:
When your PO is for Items , when posting a Pre-payment Invoice , that get 's posted to the Prepayment G/L account I've set on the General Posting Setup. The VAT combination for this Pre-payment Purchase Invoice will be pulled from the VAT Business Posting Group( Vendor) and the VAT Product Posting group on the G/L Account ( the prepayment account ).
So, that doesn't allow much flexibility on the General post setup on a simple configuration.

As an example, for a combination of Domestic (Gen Business Posting Groups) purchase of Materials (Gen Prod. posting group) I buy products/material with various VAT procentage. The Prepayment account set for this combination is only one.
On the PO , regardless of the VAT Product posting group I specify or comes inherited from the G/L or Item on the lines, my Prepayment PI will pick the VAT Product posting group form the G/L I specified on my Prepayment Account on General Posting setup.
Therefore if your Prepayment G/L Account is set to Standard (20%) as an examples, regardless of what you set on the line, it will post to Standard (20%) always.
So you might need to have extra various Gen Product groups just for this reason.

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Dynamics 365 Business Central

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Vahid Ghafarpour 9,706 Super User 2025 Season 1 on at

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Prepayments in BC

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Khushbu Rajvi. 14,482 Super User 2025 Season 1 on at

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Prepayments in BC

Hope this helps as well:Lhttps://www.youtube.com/watch?v=ddwpac93_gM
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Yi Yong 1,986 Super User 2025 Season 1 on at

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Prepayments in BC

Hello,

The VAT Prod. Posting Group of Prepayment Purchase Invoice is taken from the purchase order line's Purch. Prepayment Account GL Account's VAT Prod. Posting Group (combination of Gen. Bus. Posting Group + Gen. Prod. Posting Group).

Below is an example,

#1 - The combination is EXPORT + RAW MAT. (see that the PO line VAT Prod. Posting Group is using STANDARD).

#2 - Based on this combination, the Purch. Prepayment Account is 2410.

#3 - From G/L Account card, the VAT Prod. Posting Group is ZERO.

So the prepayment invoice posting will be using ZERO instead of STANDARD which is the purchase order line VAT Prod. Posting Group.

So how can you change the VAT. Prod. Posting Group of the prepayment account?

Well, you need to create a new combination of Gen. Bus. Posting Group + Gen. Prod Posting Group and a new VAT G/L Account.

#1 - A new combination of EXPORT + RAW MAT_PRE_STD pointing to a new Prepayment G/L Account on the Purch. Prepayments Account.

#2 - This new Prepayment GL Account should have the desired VAT Prod. Posting Group.

#3 - Change the purchase order line's to the new combination.

In summary, if you need to have different prepayment VAT Prod Posting Group then you will need to create multiple combination each combination should have a unique Prepayment GL account with the respective VAT Prod Posting Group.
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Suresh Kulla 46,926 on at

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Prepayments in BC

The VAT Prod. The posting group is determined by the G/L Account or Item entered on the purchase line. If you use a G/L Account, it will retrieve the value based on the G/L Account card. To match, you need to set the posting group on the Item on both the Purchase and Prepayment Lines. You can also create prepayments from Purchase Order; not sure how you are creating them.
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Jainam M. Kothari 6,006 on at

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Prepayments in BC

Hello,

I have tested the Prepayment Scenario. The VAT Account is same in Prepayment Invoice as well as in Purchase Invoice.

May this can help : https://learn.microsoft.com/en-us/dynamics365/business-central/finance-setup-vat

https://learn.microsoft.com/en-us/dynamics365/business-central/finance-posting-groups

https://help.sana-commerce.com/sana-commerce-93/erp-user-guide/dynamics-365-business-central/vat-posting-groups
Ramesh Kumar 3,298 on at

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Prepayments in BC

Hi,

You need to setup On the Purchases & Payables Setup page, on the Number Series FastTab, fill in the following fields:

Posted Prepmt. Inv. Nos.

Posted Prepmt. Cr. Memo Nos.

https://learn.microsoft.com/en-ca/dynamics365/business-central/finance-set-up-prepayments

Thanks

Ramesh

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