VAT Adjustment

Business Central/NAV User Forum
1

Hi,

Is there a way we can adjust VAT manually in General Journals in which it will also appear in VAT entries table?

We have discrepancy in VAT entries table and VAT account in GL and these all arose from manually adjusted VAT. We could not use our VAT reports since it gets amounts from VAT entries table and we need the balance from the GL account.

Thank you so much in advance.

2

Hmmm… Which version of Navision you use?

I haven’t heard earlier about such problem earlier, moreover, I have seen many companies adjusting VAT slightly when entering inbound documents (mainly cash register cheques) and none of them has ever complained that it had lead to GL & VAT ledgers to be out of sync…

3

We are using NAV 2013.

If for example there’s a purchase we encoded in purchase journal that supposed to have VAT but was recorded as Non VAT.

So instead of reversing the entry we make an entry in Gen. Journal.

Input Tax xxx

Vendor Account xxx

Input Tax her do not appear in VAT Ledger Entries.

4

Now you have clarified the case, and entering such transaction just with GL Acc + Vend you can’t expect VAT ledger to be hit, so it’s not an error at all.

To solve the issue you must:

  1. create VAT Product Posting Group called e.g. FULLVAT and set it up as Full VAT, system will treat ALL amount as VAT;
  2. create a Journal Batch with Copy VAT Setup to Jnl Lines checked (usually most if not all Batches have this unchecked, to avoid unneeded VAT postings it’s better to have one special batch for those cases when VAT postings must be included)
  3. create the journal entry in that Batch as before, BUT change the VAT Prod PG to that above-mentioned FULLVAT
  4. post it and check - now VAT ledger should be hit, too.

If you don’t feel yourself strong in NAV setup, I would advice to do all the above first in some training DB, if you have one, not the Production DB. The roadmap I gave here is rather general, with no step-by-step details, as that would make this post to become a novel.

Finally,

this one is a setup question, too - or users are not told which PJ Batch to use for recording such transactions.

5

I had it resolved already following your instructions. Thanks so much. It was really helpful. :slight_smile: