VAT Reconciliation on EU Purchases

I have an issue with the VAT reconciliation form in AX2012.

On EU purchases, where the item is VATABLE, but the vendor does not charge VAT. As an EU member we are required to show the VAT liability but also reclaim it.

So an invoice for £145 (no VAT), but the item normally attracts VAT at 20% (£29).

I have set up my VAT code to allow for 20% VAT on purchases, created my VAT group, with the “Import VAT/Purchase VAT” option set, and have my posting profile set to post to “Import VAT/purchase VAT expense” and “Import VAT/VAT receivable”.

When I process my PO invoice, the vendor is correctly updated with just the £145

The ledger codes for expense and receivable update correctly with the £29 and -£29 as expected. The VAT return correctly updates boxes 2, 4, 7, 9

But the VAT reconciliation does not balance, the payable shows the vat balance as £29 and the ledger as £29, but the receivable does not show any vat balance (nor even the vat code!), and does have £29 in the ledger giving an imbalance.

Any idea’s where I have gone wrong anyone ?