Dynamics 365 Business Central – A Method for posting VAT Opening Balances when going LIVE mid VAT Period

Gavin WhittakerLeave a comment

Introduction

In previous posts I’ve looked at how I post opening balances for various modules in Business Central. Links to these articles can be found below:

How I post opening balances for the General Ledger in Business Central

How I post opening balances for Fixed Assets

How I post opening balances for Bank Accounts

How I post opening balancing for Goods Receiving Not Invoiced (Expected Costs)

How I post opening balances for Sales and Purchase Ledger.

Today I wanted to discuss how I post opening balances for the VAT Statement when going live Mid VAT period.

Challenges Going LIVE mid VAT Period

If you are going LIVE with Business Central mid-VAT period, some of your VAT transactions will remain in your existing system. As a result, you won’t be able to submit your VAT return through Business Central, as it won’t include all the relevant entries. You could choose to use bridging software for submission, but you also have the option to post an opening VAT position via a journal entry.

This post will walk you through the steps to use a General Journal to record the VAT entries from your previous system enabling you to post your VAT statement from Business Central.

VAT Journal Example

To post the opening position, you’ll first need to gather the VAT figures for each box on the VAT statement from your existing system.

In this example, we’ll assume the following values have been collected from the existing system and are required for the various boxes on the VAT Statement:

VAT Box NumberAmount
Box 1 – VAT due on Sales£10,000.00
Box 4 – VAT to reclaim on Purchases£7,000.00
Box 6 – Total Value of VAT on Sales£100,000.00
Box 7 – Total Value of VAT on Purchases£70,000.00

To accommodate posting the journal we need to ensure we have a large value in the “Max VAT Difference Allowed” field in the “General Ledger Setup”

Then, to record the VAT entries we enter a General Journal as per below

Click to Enlarge

Here’s a breakdown of the General Journal:

Step 1:
Enter the VAT General Ledger codes in the “Account No.” and “Bal. Account No.” fields. This ensures the entries have no impact on the General Ledger.

Step 2:
Select the relevant VAT Posting Groups associated with the boxes on the VAT Statement.

Step 3:
Enter the VAT amounts you want reflected on the VAT Statement.

When I now preview the postings for this General Journal I can see the amounts net each other out so there’s no affect to the General Ledger.

However this journal has created the following VAT entries which can be reported on the VAT Statement.

I’ll therefore post this and view the VAT Statement and I can see the amounts are being picked up correctly.

Conclusion

In the past, bridging software was commonly used when going live with Business Central mid-VAT reporting period. However, this post explains how to post a journal to record VAT entries when moving to Business Central midway through a VAT period.

Thanks for reading!

Dynamics GP to Dynamics 365 Business Central – How to post a batch of Sales or Purchase Invoices using the same Posting Date

Gavin WhittakerLeave a comment

Introduction

During a recent training session with a client transitioning from Dynamics GP, a question came up regarding batch posting.

In Dynamics GP, it’s possible to use the batch’s “Posting Date” as the posting date for all transactions within the batch. The client wanted to know if this same functionality is available in Business Central.

In this post, I’ll walk you through how to achieve this in Business Central.

Dynamics GP Batch Setting

The setting the client is referring to is configured in the “Posting Setup” window in Dynamics GP as shown below:

Here, you can configure, on a ledger and per-transaction type (origin) basis, whether the system should use the posting date from the individual transaction or the batch when posting transactions.

Business Central “Post Batch” Feature

In Business Central, when posting multiple Sales or Purchase Invoices, you can control which date the system uses as the “Posting Date” through the following option.

See below, I can select multiple Purchase Invoices and select “Post > Post Batch”

And then enter the Posting Date you wish the system to use for each of your Purchase Invoices:

Let’s walkthrough an example with Purchase Invoices

Let’s say you have the two Purchase Invoices shown below, each with a different posting date in September, but you want both to be posted using a Posting Date of September 30, 2024:

First, you select both Purchase Invoices in the Purchase Invoice list page, choose “Post > Post Batch,” and choose to replace the Posting Date as shown below.

Now when I view the Purchase Invoices I can see both invoices have a Posting Date of 30/09/2024

Conclusion

This post shows how you can batch post Sales or Purchase Invoices using a single Posting Date, replicating the functionality available in Dynamics GP.

Thanks for reading!

Dynamics 365 Business Central – Download a VAT Configuration package for the UK – Includes EU Reverse Charge and Postponed VAT

Gavin WhittakerLeave a comment

Introduction

If you need to post EU reverse charge purchase invoices, or you are enrolled in the Postponed VAT scheme, setting up the VAT statement can be a little more complicated than usual.

To make this process easier, I’ve created a VAT Configuration Package that contains all the necessary settings for UK businesses. This includes:

  • Standard VAT for sales and purchases within the UK
  • EU Reverse Charge for services
  • Postponed VAT on imports

What’s Included in the Configuration Package?

The VAT configuration package ensures you have the following key areas of the system pre-configured:

VAT Business Posting Groups: These are linked to your Customers and Vendors.

VAT Product Posting Groups: These are linked to your items and services, ensuring that VAT is calculated correctly based on the nature of the sale or purchase.

VAT Posting Groups: These define how VAT is calculated on sales and purchase transactions.

VAT Statement: This brings everything together and what you use as the basis to submit to HMRC.

General Journal for Testing: This includes journals you can post to test the VAT Statement is working as you’d expect.

Download the Configuration Package

You can download the configuration package using this link.

Download Configuration Package

I hope this helps.

Thanks for reading!