- Sales Prepayment Invoices in Business Central are used to raise an invoice before shipping goods or supplying services.
- Customers are required to pay upfront or provide a deposit before receiving goods and services.
- A Sales Prepayment General Ledger code is specified in "General Posting Setup" to post to a Balance Sheet Liability account when a Sales Prepayment Invoice is raised.
- An issue arises when goods or services have different VAT rates, as the system uses the "VAT Product Posting Group" on the Sales Prepayment GL Account for VAT calculation.
- Creating a second Sales Prepayment General Account with a VAT Product Posting Group of ZERO can workaround the issue.
- Two new General Product Posting Groups, PREPAY0 and PREPAY20, can be created to set combinations in the General Posting Setup page.
- Selecting the correct General Product Posting Groups for each line on a Sales Order allows for the use of relevant Sales Prepayment Accounts.
- This workaround provides a method for posting Sales Prepayment Invoices for items with differing VAT amounts without having to change the "VAT Product Posting Group" on a Sales Prepayment General Ledger account.
Registered users can view the full text for FREE!
Sign In Now!
