Why does BC pick VAT Prod. Posting Group from GL Account Card for Prepayment Invoice?

Business Central/NAV
1

If I am posting a Purchase Prepayment Invoice, and do not have a VAT Prod. Posting Group on my Advance to Supplier GL Account Card, I get no VAT Line in GL Entry during Prepayment Invoice Preview posting. Even the VAT Entry has a line with 0 VAT Amount.

But if I have a VAT Prod. Posting Group in GL Account Card, I do get the VAT.

Why does for the Purchase Prepayment Invoice the VAT Prod. Posting Group not taken from Line but is taken from GL Account Card. I cannot have it on GL Account Card as we can have different VAT Prod. Posting group on line during Prepayment Invoice and it won’t work.

Thank you in advance for the guidance.

2

The reason why the VAT Prod. Posting Group is not taken from the Purchase Prepayment Invoice Line but instead taken from the GL Account Card is because the VAT Prod. Posting Group on the GL Account Card is used as a default value for all transactions posted to that account. When there is no VAT Prod. Posting Group specified on the Purchase Prepayment Invoice Line, the system will use the default value from the GL Account Card.

If you need to have different VAT Prod. Posting Groups for different Purchase Prepayment Invoice Lines, you can create multiple Advance to Supplier GL Account Cards with different VAT Prod. Posting Groups specified for each. Then, when you create a Purchase Prepayment Invoice Line, you can select the appropriate Advance to Supplier GL Account Card that has the desired VAT Prod. Posting Group.

Alternatively, you can also manually enter the VAT Prod. Posting Group on each Purchase Prepayment Invoice Line if you want to override the default value from the GL Account Card. To do this, you can open the Purchase Prepayment Invoice Line and specify the desired VAT Prod. Posting Group in the appropriate field.

3

Ignore the Scarlett’s answer… You can just open the users profile and mute him.

Reason why the VAT Prod. posting group is taken from the G/L account card, is because system is generating a new Purchase prepayment invoice in the background, where in the line it puts the Advance G/L account.

If You would create such invoice manually - the result would be the same. So You might need to create more than 1 advance account - for domestic and for foreign customers/vendors.