Adjust VAT amounts
When VAT amounts that are calculated by Business Central differ slightly from VAT amounts that are calculated by the customer or vendor, the amount can be manually adjusted on the sales or purchase documents and on general, sales, or purchase journals.
Users can manually enter or adjust VAT amounts if the calculated amount differs slightly from the amount that is calculated by the customer or vendor, such as a difference that is caused by rounding.
The following parameters must be set up before you can enter or adjust VAT in documents and journals:
General Ledger Setup - Specify a maximum VAT correction amount that can be allowed.
Sales & Receivables Setup - Allow the VAT difference for sales.
Purchases & Payables Setup - Allow the VAT difference for purchases.
Journal Templates - Allow the VAT difference for the relevant journal.
To set up the maximum VAT correction amount, follow these steps:
Select the search for page icon in the top-right corner of the page, enter general ledger setup, and then select the related link.
In the Max. VAT Difference Allowed field, enter the maximum VAT correction amount for the local currency. For example, if one is entered, then the VAT amounts can be corrected by an increase of LCY 1.00.
To allow a VAT correction for sales and purchases, follow these steps:
Select the search for page icon in the top-right corner of the page, enter sales & receivables setup, and then select the related link.
Select the Allow Vat Difference check box to allow the manual adjustment of VAT amounts in sales documents.
Close the Sales & Receivables Setup window.
Select the search for page icon in the top-right corner of the page, enter purchases & payables setup, and then select the related link.
Select the Allow Vat Difference check box to allow the manual adjustment of VAT amounts in purchase documents.
Close the Purchases & Payables Setup window.
To set up the VAT difference allowance in the relevant journal, follow these steps:
Select the search for page icon in the top-right corner of the page, enter general journal templates, and then select the related link.
To use each journal to adjust VAT amounts, select the Allow VAT Difference check box.
You will receive a message to update all related batches. If only certain batches are used to adjust VAT amounts, select No to set up individual batches. Otherwise, select Yes.