Our client mostly uses prepayment invoice when making purchase. Some of suppliers are VAT payers and some are not. In this case, to get proper accounting records, i have to change “Purchase prepayment” GL account’s VAT Prod. PG manually everytime when creating purchase order because of VAT.
If it is purchase with VAT, prepayment should include VAT and it should go to unrealized VAT account when posting prepayment invoice. If it is purchase without VAT, prepayment should not include any VAT.
Is there anyway, to handle it from Purchase order?
This seems more a legal requirement than a global Navision feature.
In Sales Line you can change Posting Groups. In Portugal it’s a common procedure. For example we have different business posting groups depending Post Codes. Since Navision doesn’t supports that, end Users change VAT info in sales lines.
I think you could do that same thing in your case.
I have tried this way, unfortunately it did not work like that. It is because of “prepayment”. It seems that only VAT prod. posting group of G/L account which setup for purchase prepayment governs if prepayment invoice amount will be VAT subject or not.
