Posting of Base Amount and VAT separately

Business Central/NAV User Forum
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To all the experts out there - Please Help! We are just starting to implement Navision and have encountered a problem on how to post the VAT (from one vendor) and Base amount (from another vendor) and how to transfer the amount from Non-Taxable Purchases to Taxable Purchases. THis is the Scenario: When we asked our SHIPPING AGENT to draw goods from the free trade zone for local sales, they will pay on our behalf the GST (i.e. Goods and Services Tax which is equivalent to VAT) incurred on the goods and then invoice us subsequently . As this is an import from overseas and kept at the Trade Free Zone, we would enter the SUPPLIER’s invoice as Non-Taxable Purchases. But if we do draw out to sell locally. we will pay the GST and to treat them as Taxable Purchases. QUESTIONS: 1) How to take in the GST amount without keying in the Base Amount? 2) When we receive the Supplier’s invoice, we will enter it as non-taxable purchases. However, when we sell locally, these will become Taxable Purchases. How then can we transfer the Base Amount from Non-Taxable Purchases to Taxable Purchases? 3) Can we get the system to generate automatically the entries to do the transfer when the GST identifier is “FULL” to indiciate that only the GST amount is accounted for, without the base amount? Look forward to all your input and soon. Warmest Regards, Pristine

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As i understand your question you need to create an “Item Charge” for clearance of goods. This will be invoiced by the shipping agent.

To determine if goods need taxes on invoicing it is important to know if the goods are “cleared” If not, then no Tax should be applied.

This is not possible automatically without making modifications in Navision.

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Glad to receive your response to my “problems”.

  1. What do you mean by creating “Item Charge” for clearance of goods? How does the “Item Charge” work? When I received the invoice from the shipping agent, what should I do to post just the VAT portion (without the base amount)?

  2. The information on whether the goods are “cleared” will come much later. We usually take them in as non-taxable first and when they are drawn out for local sales which may be months later, we then take them in as taxable purchases. Therefore the need to “transfer” the amount of non-taxable purchases to taxable purchases.

  3. Could you adivse on the modifications to be made in Navision to do the above automatically? Really appreciate your input.

Warmest Regards,

Pristine