Introduction

Sometimes, when entering a Purchase Invoice from a supplier into Business Central, the system calculates the VAT slightly differently than what appears on the supplier’s invoice.

When this happens we need to change the VAT on the Purchase Invoice in Business Central to reflect the suppliers Invoice.

In this post we’ll go through how to do this when raising the Purchase Invoice via the “Purchase Order” page and also the “Purchase Invoice” page.

First a little Config

Before we do this we must first configure Business Central to allow us to change the VAT on documents and journals.

We first do this by setting the “Max. VAT Difference Allowed” in the General Ledger Setup. I’m going to set this to 0.20 which means I’m allowed to change the VAT by up to £0.20p

Next I need to switch the “Allow VAT Difference” option ON in the “Purchase & Payables Setup” page. This will allow me to change the VAT amount on a Purchase transaction.

Now I have the configuration setup, we can go through changing the VAT on a Purchase transaction.

First we’ll tackle a Purchase Invoice entered via the “Purchase Invoice” page.

Changing VAT in the Purchase Invoice page

In this scenario, we have a Purchase Invoice for £111.11 with 20% VAT, and Business Central has calculated the VAT as £22.22. However, the supplier’s invoice shows a VAT amount of £22.23. We therefore need to change the VAT to reflect the suppliers invoice correctly in Business Central.

Below is the Purchase Invoice with the VAT calculated as £22.22.

To change the VAT I need to click “Invoice > Statistics”

I then click into the VAT Amount and change it to £22.23 which matches the suppliers invoice

The VAT is now reflected correctly in Business Central

Changing VAT on the Purchase Order page

Suppose you’re entering the same Purchase Invoice, however this time we are using the “Purchase Order” page to raise the Purchase Invoice. In this case we need to do the following

Below is the Purchase Order with the VAT calculated as £22.22

We now click “Order > Statistics”

You now drill down on the “No. of VAT Lines” in the “Invoicing” FastTab

You can now edit the VAT amount

And now the VAT is reflected correctly on the Purchase Order page

Conclusion

This post has outlined how to change the VAT amount on various Purchase documents when the VAT calculated by Business Central differs from the actual supplier invoice.

Thanks for reading!