Microsoft Dynamics AX (Archived)

How to book VAT for advance from Customer

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Posted on by faiz7049

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Hi Experts,

I received a query which is related to VAT.

Suppose a customer agreed to buy product(Manufacturing item) with $ 1000. He paid 50% which means $500 and than 25% ($250) remaining he will pay once Salesman generate Sales invoice.

I setup prepayment to record 5% on advanced which we received from customer ( $750). Now at the time of Sales invoice we need to book VAT only on remaining amount ($1000 - $750 = $ 250).

I do not know how it work.

Please help me.

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Ludwig Reinhard Microsoft Employee on at

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Hello faiz7049,

How did you record the prepayment?

Did you use a service item for that purpose or did you simply post a customer payment in a customer payment journal?

Would be great if you could provide some additional information on the steps executed so far.

Many thanks,

Ludwig

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faiz7049 2,430 on at

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Hi Ludwing,

First I created Sales Order as given below.

Than go to Customer payment journal with payment reference ( I put Sales Order number ) and using prepayment option with Sales Tax.

Prepayment Voucher is given below.

After that I go to Sales Order to invoice it. Its again calculate VAT OUTPUT on Total invoice amount 1904.78

While I already recorded VAT OUTPUT through prepayment on payment 1000.

I just want to record VAT OUTPUT on (1904.78-1000=904.78).

This is not service item this is stock item.

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Ludwig Reinhard Microsoft Employee on at

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Hi,

Where is the deduction of the $1000 in the invoice?

It looks as this is only the invoice voucher but that the prepayment deduction is not applied.

Have you checked the following post

axfinance.blogspot.com/.../customer-prepayment-in-ax-2012.html

... especially how they apply the prepayment through the settlement form before posting the final invoice?

Would be great if you could review this post and let us know whether it fixed your issue.

Many thanks and best regards,

Ludwig

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faiz7049 2,430 on at

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Hi Ludwing,

Its not work at all.

Let me explain again what I am trying to achieve.

Suppose one customer C001 agreed to buy finished goods $1000 including VAT (5%).

He paid 1st 75% which means $750.

We recorded prepayment with VAT Output(5%).

Prepayment Voucher:

Dr Cash/Bank $750

Cr Advanced from Customer $714.29

Cr VAT Output $35.71

Sales invoice for $1000 voucher:

Dr Cash/Bank $250

Dr Advanced from Customer $714.29

Cr VAT Output $11.90 ( Only applied on $ 250 because we already book VAT Output on $750 at the time of Prepayment.

Cr Sales revenue $952.39

Please give me advice.

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