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Hi all,
One question about Payment tolerance and the impact on VAT amount to paid. In my BC, I have activated the option "Adjust for payment discount" in General ledger setuo card.
But when a customer pays less than the official invoice amount and I manually accept the Payment Tolerance to close the invoice, nothing happens on VAT entries..
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ReportIn principle, if the payment is less than the amount of the invoice, there must be an impact on the amount of VAT to be paid.
Do I need to execute another process to change the open VAT amount in my VAT GL account ?
thanks for your help
Ps: I don't know if it's important, but I'm working on a Swiss Localization.
Fred.
Well it is the same here if the customer does not pay you at all then your loss is VAT deductible, but for a minor payment tolerance that will not apply.
So here you would have to post a "loss on account receivables" to be able to change the original VAT or you could post a credit memo that match the payment tolerance.
Hi Inge,
Thanks for your answer. In Switzerland the VAT should be modified according to the payment. For example, if a customer disappears before paid the invoice and you accept to lost 100% of the initial invoice amount, you can reduce the VAT amount to paid to the fiscal administration (it's like you were selling the goods with price = 0).
It's curious to have a parameter in General Ledger Setup Card to manage this topic and finally have no action on VAT entries when you accept a payment tolerance. I need to open a support request to microsoft support to understand why it does not function.
Best regards.
Fred.
There might be different regulations when it comes to payment tolerances so you should check what your local regulations allows.
Where i work a payment tolerance is not VAT calculated because in principal it does not change the value of the goods or service delivered.
And the standard system does not have any functionality that lets you configure VAT calculation on payment tolerance.
learn.microsoft.com/.../finance-payment-tolerance-and-payment-discount-tolerance
Hello,
If you don't get further responses to this issue, you may want to raise a support request to Microsoft support via your CSP / Partner.
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