MODULE 8: VAT Mdule Overview Value-Added Tax (VAT) is a tax n cnsumptin that is paid by the end cnsumer. Fr the seller, it is a tax nly n the value that is added t a prduct, material, r service. All cmpanies are required t calculate and reprt VAT n sales and purchases. Therefre, cmpanies must becme familiar with the setup prcess, in additin t hw t calculate, display, and adjust VAT amunts in sales and purchase dcuments. Additinal functins that make the required VAT reprting mre efficient include the fllwing: Imprt VAT VAT Crrectins VAT Reprting VAT Settlement Unrealized VAT Payment Discunt VAT Adjustments Nte: Althugh the general cncepts f VAT are the same in all cuntries that apply VAT, statements and VAT rates differ frm cuntry t cuntry. This mdule explains VAT based n the Micrsft Dynamics NAV 2013 wrldwide (W1) database. T be cmpliant with natinal VAT legislatin, mst cuntry versins f Micrsft Dynamics NAV 2013 include lcalizatins n VAT. Objectives The bjectives are: Explain the different VAT calculatin types. Shw hw t reverse a VAT charge. Describe hw t crrect a psted VAT entry. Shw hw t recrd Imprt VAT. Explain the Prices Including VAT fields n sales and purchase dcuments. Explain hw t adjust calculated VAT amunts in sales and purchase dcuments and jurnals. 8-1
Finance Essentials in Micrsft Dynamics NAV 2013 Describe unrealized VAT. Explain, create, and print a VAT Statement. Explain and run the Calc. and Pst VAT Settlement batch jb. 8-2
VAT Calculatin Type Mdule 8: VAT In Micrsft Dynamics NAV 2013, VAT is calculated based n the VAT Business Psting Grup and the VAT Prduct Psting grup. The VAT psting setup resembles the general psting setup and is cvered in the curse Applicatin Setup in Micrsft Dynamics NAV 2013. FIGURE 8.1: VAT POSTING SETUP WINDOW The VAT psting setup als includes the VAT Calculatin Type field. With the VAT calculatin type field, the methd f calculating VAT is defined. VAT Calculatin Type Overview Micrsft Dynamics NAV 2013 has fur methds f calculating VAT. The fllwing table prvides a descriptin fr these fur methds. Optin Nrmal VAT Descriptin Use this ptin t calculate VAT fr items sld r purchased with this particular cmbinatin f business psting grup and prduct psting grup cde. With this ptin, the seller f the item calculates and withhlds the VAT. 8-3
Finance Essentials in Micrsft Dynamics NAV 2013 Optin Reverse Charge VAT Full VAT Sales Tax Descriptin Use this ptin when yu are trading with ther cuntries, and, r regins within the Eurpean Unin (EU), where the purchaser must calculate and settle VAT accunts that have the tax authrities. If this ptin is used, the Reverse Chrg. VAT Acc. field must be filled in. When yu are selling gds with reverse charge VAT, VAT is neither calculated nr withheld. When yu are purchasing gds, the prgram calculates the VAT amunt, debits the Purchase VAT Accunt, and credits the Reverse Chg. VAT Accunt. Use this ptin when the amunt t pst, with this particular cmbinatin f the VAT business psting grup and the VAT prduct psting grup, cnsists cmpletely f VAT. This ptin is useful, fr example, when yu recrd imprt VAT, r make an entry t crrect a VAT calculatin errr. If the crrect entry is made by using Full VAT, the riginal VAT entries are nt referenced. This can make the preparatin f the VAT Statement mre difficult. Use this ptin nly if United States (U.S.) sales tax is recrded instead f VAT. Demnstratin: EU Purchases with Reverse Charge VAT Scenari: On January 23 2014, April, the accunts payable crdinatr at CRONUS Internatinal Ltd., receives a purchase invice frm the German vendr JB-Speditin fr 1,200.00 eurs fr delivery expenses. April uses G/L accunt 8450 t pst the delivery expenses. Because JB-Speditin is a Eurpean Unin (EU) vendr and it des nt invice VAT, April must make sure that she uses the reverse charge VAT when she is psting the purchase invice. Demnstratin Steps 1. Create the purchase invice fr vendr 49989898 JB-Speditin and analyze the results. a. On the Navigatin Pane, click Departments > Financial Management > Payables > Purchase Invices. b. In the ribbn, click New t create a new purchase invice. 8-4
Mdule 8: VAT c. In the Buy-frm Vendr N. field, click the drp-dwn list. d. Lcate and select vendr 49989898. e. In the Psting Date field, enter 01/23/14. f. In the Vendr Invice N. field, enter RC001. g. In the lines, in the Type field, click the drp-dwn list and select G/L Accunt. h. In the N. field enter 8450. i. In the Quantity field, enter 1. j. In the Direct Unit Cst Excl. VAT field, enter 1200. k. In the ribbn, click Pst. l. Click Yes t pst the invice. m. Clse the Purchase Invice windw. T review the psted result, fllw these steps. n. In the Search bx, enter Psted Purchase Invices, and then click the related link.. Lcate and select the line fr vendr 49989898. p. In the ribbn, click Navigate. The navigate functin shws all the recrds, linked t this psted purchase invice. T review the G/L entries, fllw these steps. q. Select the G/L entry line. r. In the ribbn, click Shw. FIGURE 8.2: GENERAL LEDGER ENTRIES WINDOW 8-5
Finance Essentials in Micrsft Dynamics NAV 2013 Ntice that there are fur G/L entries. Because f the reverse charge VAT, there are tw entries with VAT amunts. These entries use the G/L accunts set up in the VAT psting setup. T review the VAT entry fr this invice, fllw these steps. a. With the General Ledger Entries windw pen, click ESC t return t the Navigate windw. b. Select the VAT entry line. c. In the ribbn, click Shw. FIGURE 8.3: VAT ENTRIES WINDOW Based n the VAT psting setup, the cmbinatin f the VAT business psting grup EU and the VAT prduct psting grup VAT25 results in the Reverse Charge VAT calculatin type. Demnstratin: Set Up and Pst Imprt VAT Scenari: April, the accunts payable crdinatr at CRONUS Internatinal Ltd. psts a purchase invice f 100,000.00 lcal currency (LCY) fr imprted gds, that is received frm a U.S. vendr n January 30, 2014. When the VAT invice frm the transprt cmpany (vendr 62000 WalkerHlland) arrives, it shws a calculated imprt VAT amunt f 25 percent f the invice amunt (25,000.00 LCY). Therefre, the psting f this VAT invice shuld result in a VAT base f zer (0) and a VAT amunt f 25,000.00 LCY. The first step is t set up a general ledger accunt and the VAT psting setup t accmmdate the Imprt VAT. In this demnstratin, the imprt VAT is psted by using a purchase invice. 8-6
Demnstratin Steps Mdule 8: VAT 1. Set up the Imprt VAT. a. Set up the fllwing t recrd Imprt VAT by using a general jurnal: VAT Prduct Psting Grup G/L Accunt VAT Psting Setup cmbinatin fr Imprt VAT b. T set up the VAT prduct psting grup fr Imprt VAT, fllw these steps. i. On the Navigatin Pane, click Departments > Administratin > Applicatin Setup > Financial Management > VAT Psting Grup > VAT Prduct Psting Grups. ii. Click New. iii. In the Cde field, enter IMPVAT. iv. In the Descriptin field, enter Imprt VAT. v. Clse the VAT Prduct Psting Grup windw. c. T set up the G/L accunt fr Imprt VAT, fllw these steps. i. On the Navigatin Pane, click Financial Management > General Ledger > Chart f Accunts. ii. Click New. iii. In the N. field, enter 5650. iv. In the Name field, enter Imprt VAT 25%. v. In the Incme/Balance field, click the drp-dwn list and select Balance Sheet. vi. On the Psting FastTab, in the General Psting Type field, click the drp-dwn list and select Purchase. vii. In the Gen. Bus. Psting Grup field, click the drpdwn list and select NATIONAL. viii. In the VAT Bus. Psting Grup field, click the drpdwn list and select NATIONAL. ix. In the Gen. Prd. Psting Grup field, click the drpdwn list and select MISC. x. In the VAT Prd. Psting Grup field, verwrite the default value with IMPVAT. xi. Click OK. xii. Click Indent Chart f Accunts. xiii. Click Yes t cntinue with the indent functin. 8-7
Finance Essentials in Micrsft Dynamics NAV 2013 d. T set up the VAT psting setup fr Imprt VAT, fllw these steps. i. On the Navigatin Pane, click the Departments > Administratin > Applicatin Setup > Financial Management > VAT Psting Grup > VAT Psting Setup. ii. Click New. iii. In the VAT Bus. Psting Grup field, click the drpdwn list and select NATIONAL. iv. In the VAT Prd. Psting Grup field, click the drpdwn list and select IMPVAT. v. Leave the VAT % field set t zer (0). vi. In the VAT Calculatin Type field, click the drp-dwn list and select Full VAT. vii. In the Purchase VAT Accunt field, enter 5650. e. N ther fields have t be ppulated in this card. 2. Pst a purchase invice t recrd Imprt VAT. a. On the Navigatin Pane, click Departments > Financial Management > Payables and then select Purchase Invices. b. Click New. c. In the Buy-frm Vendr N. field, click the drp-dwn list. d. Lcate and select vendr 62000 - WalkerHlland. e. In the Psting Date field, enter 01/30/14. f. In the Vendr Invice N. field, enter WH001. g. In the lines, in the Type field, click the drp-dwn list and select G/L Accunt. h. In the N. field, enter 5650. i. In the Quantity field, enter 1. j. In the Direct Unit Cst Excl. VAT field, enter 25000. Nte: Yu can view the result f the VAT calculatin type FULL VAT befre yu pst the invice by ging t the Purchase Invice Statistics page (F7). k. Click Pst. l. Click Yes t pst the invice. m. Clse the Purchase Invice windw. 8-8
T review the psted entries, fllw these steps. Mdule 8: VAT a. In the Search bx, enter Psted Purchase Invices, and then click the related link. b. Lcate and select the line fr vendr 62000. c. In the ribbn, click Navigate. The navigate functin shws all the recrds that are linked t this psted purchase invice. T review the G/L entries, fllw these steps. a. Select the G/L entry line. b. In the ribbn, click Shw. FIGURE 8.4: GENERAL LEDGER ENTRIES WINDOW There are tw G/L entries with the same G/L accunt. The first entry is fr the VAT base amunt and it is zer. The secnd entry is fr the VAT amunt. T review the VAT entry fr this invice, fllw these steps. a. With the General Ledger Entries windw pen, click ESC t return t the Navigate windw. b. Select the VAT entry line. c. In the ribbn, click Shw. 8-9
Finance Essentials in Micrsft Dynamics NAV 2013 FIGURE 8.5: VAT ENTRIES WINDOW In the VAT Entries windw, the Base field is 0.00 and the Amunt field is 25,000.00 lcal currency (LCY). Demnstratin: Set Up and Pst a VAT Crrectin Scenari: April, the accunts payable crdinatr at CRONUS Internatinal Ltd., receives an invice frm the vendr Electrnics Ltd. (N 61000). The invice is fr 1,250.00 LCY and includes a 25 percent VAT. With the VAT25 psting cmbinatin, the fllwing entries are made: 1,250.00 LCY credit t bth the relevant vendr accunt and the payables accunt. 250.00 LCY debit t the purchase VAT accunt. April later receives the vendr invice that states the amunt including VAT is 1240.00 LCY. Therefre, a 10.00 crrectin must be psted. April cntacts Cassie, the accuntant, t make the crrectin. Because this is the first VAT crrectin that is made at CRONUS Internatinal Ltd., Cassie sets up the fllwing t prepare fr the crrectin: Purchase VAT 25% accunt is set up fr Direct Psting. The crrectin VAT Prduct Psting Grup is created. The VAT Psting Setup cmbinatin fr Natinal (dmestic) vendrs and the Crrectin VAT Prduct Psting Grup is created, fr Full VAT, with a zer VAT %. As sn as the setup is cmplete, she psts the crrectin by using a general jurnal and then reviews the psting. As sn as the psting and review are cmplete, she remves the Direct Psting features n the G/L accunts. 8-10
Demnstratin Steps Mdule 8: VAT 1. Set up the G/L accunt and VAT psting grups. a. On the Navigatin Pane, click Departments > Financial Management > General Ledger > Chart f Accunts. b. Lcate G/L accunt 5630. c. In the ribbn, click Edit. d. Click the Direct Psting check bx t insert a check mark. e. Click OK t clse the G/L accunt card. f. In the navigatin pane, click Administratin > Applicatin Setup > Financial Management, click VAT Psting Grup > VAT Prduct Psting Grups. g. Click New. h. In the Cde field, enter Crrect. i. In the Descriptin field, enter VAT crrectins. j. With the new line selected, click Setup. k. In the ribbn, click New. l. In the VAT Bus. Psting Grup field, click the drp-dwn list and then select NATIONAL. m. In the VAT Calculatin Type field, click the drp-dwn list and then select Full VAT. n. In the Purchase VAT Accunt field, enter 5630.. Click OK. p. Click Clse q. Click OK. 2. Pst a VAT crrectin by using the general jurnal. a. On the navigatin pane, click Financial Management > General Ledger > General Jurnals. b. In the Batch Name field, click the drp-dwn list and select Default. c. Click OK. d. Delete any existing jurnal lines. e. Open the Chse Clumn feature and add VAT Bus. Psting Grup and VAT Prd. Psting Grup. f. In the Psting Date field, enter 01/01/14. g. In the Accunt N. field, enter 5630. h. In the Amunt field, enter -10.00. i. In the General Psting Type field, click the drp-dwn list and then select Purchase. 8-11
Finance Essentials in Micrsft Dynamics NAV 2013 j. In the VAT Bus. Psting Grup field, click the drp-dwn list and then select Natinal. k. In the VAT Prd. Psting Grup field, click the drp-dwn list and then select Crrect. l. In the Bal. Accunt Type field, click the drp-dwn list and then select Vendr. m. In the Bal. Accunt N. field, enter 61000. n. Click Pst.. Click Yes t pst the jurnal. p. Click OK. q. Clse the General Jurnals windw. T view the VAT crrectin entries, fllw these steps. a. In the Search bx, enter G/L Registers, and then select the related link. b. Press CTRL+END t mve t the last entry. c. In the ribbn, click General Ledger. d. Open the Chse Clumn feature and add the VAT Amunt field. e. Click OK and repen the general ledger entries. FIGURE 8.6: GENERAL LEDGER ENTRIES WINDOW When the general jurnal is psted, the fllwing entries are created: 10.00 LCY credit t the VAT Amunt (VAT Entry credit) 10.00 LCY credit t the Purchase VAT Accunt 10.00 LCY debit t the Payables Accunt 8-12
T review the VAT entry credit, fllw these steps. Mdule 8: VAT a. With any line in the General Ledger Entries windw, click Navigate. b. Click the VAT Entry line and then click Shw. The 10.00 LCY VAT entry credit appears. c. Clse the VAT Entries, Navigate and General Ledger Entries windws. T remve the direct psting features n the G/L accunts, fllw these steps. a. On the Navigatin Pane, click the Departments buttn, click Financial Management, click General Ledger, and then select Chart f Accunts. b. Lcate G/L accunt 5630. c. In the ribbn, click Edit. d. Click the Direct Psting check bx t remve the check mark. e. Click OK t clse the G/L Accunt Card windw. Display VAT Amunts in Sales and Purchase Dcuments Cmpanies can display and calculate VAT amunts in sales and purchase dcuments differently, depending n the Prices Including VAT settings n the custmer r vendr card. Nte: Except fr retail sales, the Prices Including VAT check bx typically is nt selected. Display VAT Amunts in Sales and Purchase Dcuments The selectin made in the Prices Including VAT check bx determines whether unit prices n sales dcuments and direct unit csts n purchase dcuments include VAT. Set up the Prices Including VAT check bx in the fllwing areas: Custmer Card Vendr Card Item Card Sales dcument header Purchase dcument header 8-13
Finance Essentials in Micrsft Dynamics NAV 2013 The fllwing table shws the descriptin f the behavir f the Prices Including VAT check bx, when yu select it and when yu d nt select it n the custmer and vendr cards. Prices Includes VAT check bx Nt selected Selected Descriptin Sales and purchase dcuments are autmatically set up t exclude VAT frm unit prices and direct unit csts. Therefre, the price and cst fields n the respective dcument dynamically display Unit Price Excl. VAT and Direct Unit Cst Excl. VAT. Sales and purchase dcuments are autmatically set up t include VAT in unit prices and direct unit csts. Therefre, the price and cst fields n the respective dcument dynamically display Unit Price Incl. VAT and Direct Unit Cst Incl. VAT. On the item card, if the Prices Including VAT check bx is nt selected, VAT is nt included in the unit price, and the unit price is cpied directly frm the item card t the Unit Price field n the sales line. If the Prices Including VAT check bx is selected, VAT is subtracted frm the price n the item card befre it is entered n the sales line, and the VAT Bus. Psting Gr. (Price) field must be filled in. Nte: T include VAT in the unit price n items, yu must display the Prices Including VAT and VAT Bus. Psting Gr. (Price) fields n the Item Card windw by using the Object Designer. The fllwing table prvides an verview f hw unit price amunts are calculated fr a sales dcument when prices are nt set up in the Sales Prices windw. Price Includes VAT field n Item Card Prices Including VAT field in Sales Header Actin Perfrmed N check mark N check mark The Unit Price n the Item Card is cpied t the Unit Price Excl. VAT field n the sales lines. N check mark Check mark The VAT amunt fr each unit is calculated and added t the Unit Price n the Item Card. This ttal Unit Price is then entered in the Unit Price Incl. VAT field n the sales lines. 8-14
Price Includes VAT field n Item Card Prices Including VAT field in Sales Header Mdule 8: VAT Actin Perfrmed Check mark N check mark The VAT amunt included in the Unit Price n the Item Card is calculated by using the VAT% related t the VAT Bus. Psting Gr. (Price) and the VAT Prd. Psting Grup cmbinatin. The Unit Price n the Item Card that is reduced by the VAT amunt is then entered in the Unit Price Excl. VAT field in the sales lines. Check mark Check mark The Unit Price n the Item Card is cpied t Unit Price Incl. VAT field n the sales lines. If the Prices Including VAT functin is set up n custmers and vendrs, yu d nt have t change the settings n the sales r purchase dcument headers. Hwever, if amunts n individual dcuments have t include r exclude VAT, the Prices Including VAT check bx in the header can be changed. If yu change the Prices Including VAT setting in a sales r purchase dcument header, yu receive a message that asks yu t update the unit price r direct unit cst n the lines. If yu change the Prices Including VAT setting, any manual changes that yu make t the unit prices r direct unit csts are verwritten. Adjust VAT Amunts in Sales and Purchase Dcuments and Jurnals When VAT amunts that are calculated by Micrsft Dynamics NAV 2013 differ slightly frm VAT amunts that are calculated by the custmer r vendr, the amunt can be manually adjusted n the sales r purchase dcuments, and n general, sales, r purchase jurnals. Setup Users can manually enter r adjust VAT amunts, if the calculated amunt differs slightly frm the amunt calculated by the custmer r vendr, fr example, a difference that is caused by runding. 8-15
Finance Essentials in Micrsft Dynamics NAV 2013 The fllwing must be set up befre yu enter r adjust VAT in dcuments and jurnals: General Ledger Setup: Specify a maximum VAT crrectin amunt that can be allwed. Sales & Receivables Setup: Allw the VAT difference fr sales. Purchases & Payables Setup: Allw the VAT difference fr purchases. Jurnal Templates: Allw the VAT difference fr the relevant jurnal. T set up the maximum VAT crrectin amunt, fllw these steps. 1. On the Navigatin Pane, click the Departments > Administratin > Applicatin Setup > Financial Management > Finance > General Ledger Setup. 2. In the Max. VAT Difference Allwed field, enter the maximum VAT crrectin amunt fr the lcal currency. Fr example, if five is entered, then the VAT amunts can be crrected by an increase f 5.00 LCY. 3. Clse the General Ledger Setup windw. FIGURE 8.7: GENERAL LEDGER SETUP WINDOW 8-16
T allw a VAT crrectin fr sales and purchases, fllw these steps. Mdule 8: VAT 1. On the Navigatin Pane, click the Departments > Administratin > Applicatin Setup > Financial Management > Finance > Sales & Receivables Setup. 2. Select the Allw Vat Difference check bx t allw the manual adjustment f VAT amunts in sales dcuments. 3. Clse the Sales & Receivables Setup windw. 4. Select Purchases & Payables Setup. 5. Select the Allw Vat Difference check bx t allw the manual adjustment f VAT amunts in purchase dcuments. 6. Clse the Purchases & Payables Setup windw. T set up the VAT difference allwance in the relevant jurnal, fllw these steps. 1. On the Navigatin Pane, click the Departments > Administratin > Applicatin Setup > Financial Management > General > Jurnal Templates. 2. T edit the General Jurnal Templates, duble-click the jurnal name. 3. T use each jurnal t adjust VAT amunts, select the Allw VAT Difference check bx. 4. Yu will receive a message t update all related batches. If nly certain batches are used t adjust VAT amunts, click N t set up individual batches. Otherwise, click Yes. If yu answer N t the message that asks yu t update all related batches, then yu must set up individual batches. T set up individual batches, fllw these steps. 1. In the General Jurnal Templates windw, click the Navigate tab f the ribbn, and then click Batches. 2. Fr each batch, add a check mark in the Allw VAT Difference check bx. 3. Clse the General Jurnal Batches. 4. Clse the General Jurnal Templates. Adjust VAT Amunts in Jurnals After setup is cmplete, VAT adjustments can be made in the Sales Order Statistics r Purchase Order Statistics windws. T pen bth windws, fllw these steps. 1. Frm the sales r purchase rder, click Statistics. 8-17
Finance Essentials in Micrsft Dynamics NAV 2013 2. Click the Invicing FastTab. Adjustments can nly be made while n this FastTab. 3. Drill-dwn n the N. f VAT Lines field. FIGURE 8.8: PURCHASE ORDER STATISTICS WINDOW In bth windws, the ttal VAT amunt fr the invice, gruped by VAT identifier, is displayed in the lines. T make an adjustment, change the amunt in the VAT Amunt field n the lines fr each VAT identifier. Nte: If the sales r purchase dcument has a currency cde assigned, the VAT amunts in the Statistics page are displayed in the same currency. When the VAT Amunt field is changed, Micrsft Dynamics NAV 2013 verifies that the VAT amunt has nt changed by mre than the amunt that is specified as the maximum difference allwed. If this is the case, then, ne f the fllwing actins ccurs: If the amunt is utside the range f the Max. VAT Difference Allwed, the system displays a warning stating that the maximum allwed difference and the adjustment is prevented. Click OK and enter anther VAT Amunt that is within the allwed range. If the VAT difference is equal t r less than the maximum allwed, the VAT is divided prprtinally amng the dcument lines that have the same VAT identifier. 8-18
Mdule 8: VAT Cnfirm the riginal VAT amunt and the adjusted difference n the Sales Order Statistics r Purchase Order Statistics windws by using the Shw Clumn functin t display the Calculated VAT Amunt and VAT Difference fields. Demnstratin: Adjust a VAT Amunt in a Purchase Dcument Scenari: April, the accunts payable crdinatr at CRONUS Internatinal Ltd., receives an invice frm vendr 10000, fr purchase rder 106009. The VAT amunt n the invice is 226.00 LCY, and it is nt calculated as 225.90 LCY. April discusses the difference with Phyllis, the accunting manager, wh tells her t set up a 0.10 LCY maximum VAT crrectin amunt and t allw crrectins fr purchases. April accidentally enters 0.01 LCY as the maximum and then tries t adjust the VAT amunt n the purchase invice. Because the change is nt within the allwed range, she is prevented frm making the change. She checks her setup, and after crrecting the maximum VAT crrectin amunt, she adjusts the VAT amunt accrdingly. The Calculated VAT Amunt and VAT Difference fields are als added t the Purchase Order Statistics windw t review the riginal VAT amunt and the difference between the amunts. Demnstratin Steps 1. Set up Micrsft Dynamics NAV 2013 s that yu can make VAT crrectins. a. On the Navigatin Pane, click Departments > Administratin > Applicatin Setup > Financial Management > Finance > General Ledger Setup. b. In the Max. VAT Difference Allwed field, enter 0.01. c. Click OK t clse the General Ledger Setup windw. d. Click Purchases & Payables Setup. e. Add a check mark in the Allw Vat Difference check bx. f. Click OK t clse the Purchases & Payables Setup windw. 2. Make the adjustment n the purchase rder. a. On the navigatin pane, click Purchase > Order Prcessing > Purchase Orders. b. Lcate and select rder 106009. c. In the ribbn, click Statistics. d. Click the Invicing FastTab. 8-19
Finance Essentials in Micrsft Dynamics NAV 2013 e. T pen the VAT Amunt Lines, click the number 1 field N. f VAT Lines. f. In the VAT Amunt field in the lines, enter 226.00. g. Press Tab r Enter. Yu will receive an errr message stating that the VAT difference must nt exceed Max. VAT Difference Allwed = 0.01. h. Click OK, and then click Yes t delete the changes. i. Click OK t clse the Purchase Order Statistics windw. 3. Crrect the maximum VAT difference allwed and cmplete the VAT amunt adjustment n the purchase rder. a. On the Navigatin Pane, click Departments > Administratin > Applicatin Setup > Financial Management > Finance > General Ledger Setup. b. Update the Max. VAT Difference Allwed field t 0.10. c. Click OK t clse the General Ledger Setup windw. d. On the Navigatin Pane, click Purchase > Order Prcessing > Purchase Orders. e. Lcate and select rder 106009. f. On purchase rder 106009, click Statistics. g. Click the Invicing FastTab. h. Click the N. f VAT Lines field. i. In the VAT Amunt field in the lines, enter 226.00. j. Click OK. Ntice that a message des nt appear in the header, and the 25% VAT field in the General FastTab still cntains the riginal amunt f 225.90 LCY. k. Open the VAT Amunt Lines windw. Ntice that the 25% VAT field nw cntains the adjusted amunt f 226.00 LCY. l. In the Chse Clumn feature, add the Calculated VAT Amunt and VAT Difference. m. Review the amunts and then clse the VAT Amunt Lines, Purchase Order Statistics, and Purchase Order windws. Adjust VAT Amunts in Jurnals Calculated VAT amunts can be adjusted in general, sales, and purchase jurnals. This might be necessary when an invice received frm a vendr is entered in the general jurnal and the VAT amunt n the invice differs frm the calculated VAT amunt. 8-20
Mdule 8: VAT After setup is cmplete, adjustments t VAT amunts t equal inviced VAT amunts can be made in the VAT Amunt field in the general jurnal and the Bal. VAT Amunt field in the sales r purchase jurnal. Similar t changing VAT amunts in sales and purchase dcuments, Micrsft Dynamics NAV 2013 verifies that the difference is nt greater than the specified maximum. One f the fllwing actins then ccurs: If the difference is greater than the maximum allwed, the system displays a warning stating that the maximum allwed difference and the adjustment is prevented. Click OK and enter anther amunt that is within the allwed range. If the VAT difference is equal t r less than the maximum allwed, the difference is displayed in the VAT Difference field. Demnstratin: Adjust a VAT Amunt in a General Jurnal Scenari: Phyllis, the accunting manager at CRONUS Internatinal Ltd., enters expenses in the general jurnal, and she ntices that there are sme minr VAT differences. Fr the jurnal t accept changes t the VAT amunts, Phyllis sets a 2.00 LCY maximum VAT difference and allws fr a VAT difference in the general jurnal and all related batches. One f the expenses, the 800.00 LCY fr Electricity and Heating, calculates VAT at 160.00 LCY. Hwever, the VAT amunt she is psting is 162.00 LCY. She accidentally enters 163.00 LCY and receives an errr. After Phyllis enters the crrect VAT amunt, she reviews the amunt in the VAT Difference field. Demnstratin Steps 1. Adjust a VAT Amunt in a General Jurnal. a. On the Navigatin Pane, click the Departments, click Administratin, click Applicatin Setup, click Financial Management, click Finance, and then select General Ledger Setup. b. In the Max. VAT Difference Allwed field, enter 2. c. Clse the General Ledger Setup windw. d. On the navigatin pane, click General, and then select Jurnal Template. e. Lcate and select the GENERAL template. f. Add a check mark in the Allw VAT Difference check bx. g. Click Yes t update all related general jurnal batches. h. Clse the General Jurnal Templates windw. 8-21
Finance Essentials in Micrsft Dynamics NAV 2013 T enter a line in the general jurnal and adjust the VAT amunt, fllw these steps. a. On the Navigatin Pane, click General Ledger and then select General Jurnals. b. In the Batch Name field, click the drp-dwn list and select Default. c. Click OK. d. Delete existing lines, if any exist. e. Open the Chse Clumn feature and add the VAT Amunt and VAT Difference fields. f. In the Psting Date field, enter 01/25/14. g. Make sure that the Accunt Type is set t G/L Accunt. h. In the Accunt N. field, enter 8120. i. In the Amunt field, enter 800. j. Ntice that the VAT Amunt field cntains 160.00 LCY. Change this amunt t 163. k. Press Tab r Enter. Yu will receive a message that states that the VAT Difference must nt be mre than tw. l. In the VAT Amunt field, enter 162. m. Press Tab r Enter. n. Review the amunt in the VAT Difference field and clse the General Jurnal windw. 8-22
Mdule 8: VAT Lab 8.1: Adjust a VAT Amunt in a Sales Dcument Scenari A purchase rder is received frm custmer 20000, Selangrian Ltd., fr sales rder 101017. The custmer has agreed t pay the full amunt f the sales rder. Hwever, the custmer s calculated VAT is slightly larger than the calculatin that appears n the sales rder. The calculated VAT amunt is 277.27 LCY. The custmer has calculated the VAT amunt as 280.21 LCY. T increase the sales rder prcess, yu set up a maximum VAT crrectin amunt f 3.00 LCY and enable the VAT differences n sales dcuments. After the setup is cmplete, yu change the VAT amunt n the sales rder. Exercise 1: Adjust a VAT Amunt in a Sales Dcument Task 1: Setup Micrsft Dynamics NAV 2013 t Adjust VAT Amunts fr Sales Dcuments High Level Steps 1. Open the General Ledger Setup windw. 2. Set the maximum VAT difference as it is specified in the scenari. 3. Open the Sales & Receivables Setup windw. 4. Allw the VAT difference fr sales dcuments. Detailed Steps 1. Open the General Ledger Setup windw. a. On the Navigatin Pane, click Departments > Administratin > Applicatin Setup > Financial Management > Finance > General Ledger Setup. 2. Set the maximum VAT difference as it is specified in the scenari. a. In the Max. VAT Difference Allwed field, enter 3. b. Clse the General Ledger Setup windw. 3. Open the Sales & Receivables Setup windw. a. Click Sales & Receivables Setup. 4. Allw the VAT difference fr sales dcuments. a. Put a check mark in the Allw Vat Difference check bx. b. Clse the Sales & Receivables Setup windw. 8-23
Finance Essentials in Micrsft Dynamics NAV 2013 Task 2: Adjust the VAT Amunt n Sales Order 101017 High Level Steps 1. Open the Sales Order windw and lcate rder 101017. 2. Open the Sales Order Statistics windw. 3. Click the Invicing FastTab and enter the adjusted VAT amunt as it is specified in the scenari. Detailed Steps 1. Open the Sales Order windw and lcate rder 101017. a. On the Navigatin Pane, click Sales & Marketing > Order Prcessing > Sales Orders. 2. Open the Sales Order Statistics windw. a. Lcate and select rder 101017. b. Click Statistics. 3. Click the Invicing FastTab and enter the adjusted VAT amunt as it is specified in the scenari. a. Click the Invicing FastTab. b. Click the N. f VAT Lines 1 field. c. In the VAT Amunt field in the lines, enter 280.21. d. Click OK. e. Clse the Sales Order Statistics windw. 8-24
Mdule 8: VAT Lab 8.2: Adjust a VAT Amunt in a Purchase Jurnal Scenari An expense fr vehicle maintenance is received. As the accunts payable crdinatr at CRONUS Internatinal Ltd., yu typically pst these expenses by using the Purchase Jurnal instead f creating an invice. In the past, these invices have cntained large differences in VAT calculatins. Therefre, befre yu enter the expense, yu set a 10.00 LCY maximum VAT difference allwance and then verify that bth the purchase jurnal and Purchase area are set up t adjust VAT amunts. The jurnal line includes the fllwing infrmatin: Batch: Default Psting Date: January 28 2014 G/L accunt: 8530 Amunt: 210.17 Adjusted VAT amunt: 51.49 Yu d nt have t enter a balancing accunt r pst the jurnal. Exercise 1: Adjust a VAT Amunt in a Purchase Jurnal Task 1: Setup Micrsft Dynamics NAV 2013 t Adjust VAT Amunts fr Purchase Jurnals High Level Steps 1. Open the General Ledger Setup windw. 2. Set the maximum VAT difference as it is specified in the scenari. 3. Open the Jurnal Templates windw. 4. Allw VAT differences fr the purchases jurnal template. 5. Open the Purchases & Payables Setup windw. 6. Allw VAT differences fr purchases. Detailed Steps 1. Open the General Ledger Setup windw. a. On the Navigatin Pane, click Departments > Administratin > Applicatin Setup > Financial Management > Finance > General Ledger Setup. 2. Set the maximum VAT difference as it is specified in the scenari. a. In the Max. VAT Difference Allwed field, enter 10. b. Clse the General Ledger Setup windw. 8-25
Finance Essentials in Micrsft Dynamics NAV 2013 3. Open the Jurnal Templates windw. a. On the navigatin pane, click General and then select Jurnal Templates. 4. Allw VAT differences fr the purchases jurnal template. a. Select the Purchases jurnal template and add a check mark in the Allw VAT Difference check bx. b. Click Yes t update all related general jurnal batches. c. Clse the Jurnal Templates windw. 5. Open the Purchases & Payables Setup windw. a. On the navigatin pane, click Finance, and then select Purchases & Payables Setup. 6. Allw VAT differences fr purchases. a. Add a check mark in the Allw Vat Difference check bx. b. Clse the Purchases & Payables Setup windw. Task 2: Create the Expense and Adjust the VAT Amunt High Level Steps 1. Open the Purchase Jurnal windw. 2. Shw the VAT Amunt and VAT Difference fields, if this is necessary. 3. Enter the expense line as it is specified in the scenari. Detailed Steps 1. Open the Purchase Jurnal windw. a. On the Navigatin Pane, click Purchase > Order Prcessing > Purchase Jurnals. b. Make sure that the Default batch is selected. 2. Shw the VAT Amunt and VAT Difference fields, if this is necessary. a. Open the Chse Clumn feature and add the VAT Amunt and VAT Difference fields. 3. Enter the expense line as it is specified in the scenari. a. In the Psting Date field, enter 01/28/14. b. Make sure that the Accunt Type is set t G/L Accunt. c. In the Accunt N. field, enter 8530. d. In the Amunt field, enter 210.17. e. In the VAT Amunt field, enter 51.49. f. Press Tab r Enter. g. Review the amunt in the VAT Difference field. 8-26
Unrealized VAT Mdule 8: VAT Micrsft Dynamics NAV prvides the ptins t prcess unrealized VAT. VAT is typically calculated when the invice is created but is nt due r realized until the invice is paid. Nte: Using unrealized VAT depends n natinal VAT legislatin, and is therefre nt used in all cuntries. Unrealized VAT Setup T prcess unrealized VAT, the Unrealized VAT check bx must be selected in the General Ledger Setup page. Yu must define hw and when VAT is realized in the Unrealized VAT Type field in the VAT Psting Setup page. If the default value is blank, this indicates that unrealized VAT is nt calculated fr the cmbinatin f the VAT business and the VAT prduct psting grups. If yu must calculate unrealized VAT, the five ptins that are available are shwn in the fllwing table. Optin Percentage First Last First (Fully Paid) Last (Fully Paid) Descriptin Each payment cvers bth VAT and the invice amunt in prprtin t the payment's percentage f the remaining invice amunt. The paid VAT amunt is transferred frm the unrealized VAT accunt t the VAT accunt. Payments cver VAT first and then invice amunts. The amunt transferred frm the unrealized VAT accunt t the VAT accunt equals the payment amunt until the ttal VAT is paid. Payments cver the invice amunt first and then the VAT. N amunt is transferred frm the unrealized VAT accunt t the VAT accunt, until the ttal amunt f the invice, excluding VAT, is paid. Payments cver VAT first (as in the First ptin), but n amunt is transferred t the VAT accunt until the full VAT amunt is paid. Payments cver the invice amunt first (as in the Last ptin), but n amunt is transferred t the VAT accunt until the full VAT amunt is paid. 8-27
Finance Essentials in Micrsft Dynamics NAV 2013 VAT Statements As sn as the Unrealized VAT Type is selected, enter the accunts that unrealized VAT psts t in the fllwing fields: Sales VAT Unreal. Accunt Purch. VAT Unreal. Accunt Reverse Chrg. VAT Unreal. Acc. Mst cmpanies are required t peridically submit a VAT declaratin. The VAT statement is used t specify the basis fr calculating the VAT that is payable t the tax authrities. The VAT statement is defined based n the fllwing: Accunts in the Chart f Accunts windw. Entries in the VAT Entries windw. The advantage f using the VAT entries is that yu can clse these entries by psting the VAT settlement. When yu wrk with VAT entries, yu can lcate VAT crrectin entries in previus accunting perids, where the VAT statement is created. In Micrsft Dynamics NAV 2013, the VAT statement is typically nly defined during the initial cmpany setup, and it is set up with the frmat that is required by the tax authrities. Additinally, it can be previewed and printed after it is defined. VAT Statement Templates and Names Befre yu can create a VAT statement, yu must create a VAT statement template. T create a VAT Statement Template, fllw these steps. 1. On the Navigatin Pane, click Departments > Administratin > Applicatin Setup > Financial Management > General > VAT Statement Templates. 2. Click New. 3. In the Name field, enter a unique name fr the template. 4. In the Descriptin field, enter a shrt descriptin fr the template. T assign statements t a template, fllw these steps. 1. On the VAT Statement Templates windw, select the relevant template. 2. On the Navigate tab f the ribbn, click Statement Names. 3. In the Name field, enter a unique name fr the statement. 8-28
Mdule 8: VAT 4. In the Descriptin field, enter a shrt descriptin fr the statement. 5. Clse the VAT Statement Names and VAT Statement Templates windws. The VAT Statement is nw defined in the VAT Statement windw. Smetimes yu culd have different VAT reprting requirements, such as when yu are reprting t different gvernment authrities r t different gvernments. When this is required, yu must create different VAT statements. If different VAT Statements are created based n the same template, different names are created in the VAT Statement Names windw. VAT Statement When the VAT business psting grup and the VAT prduct psting grup transactin psts, the system prcesses the VAT amunts n the G/L accunts accrding t hw they are defined in the VAT Psting setup. Then the VAT entries are created. Yu can use the VAT Statement windw t calculate the VAT settlement amunt fr a specific perid. By defining the VAT Statement windw, yu determine hw the statement is calculated and hw it appears when it is printed. Each line in the VAT statement represents a filter n the G/L Entry table r the VAT Entry table. FIGURE 8.9: VAT STATEMENT WINDOW 8-29
Finance Essentials in Micrsft Dynamics NAV 2013 The fllwing list describes the fields that appear n the VAT Statement: Name Accesses the VAT Statement Names windw. New statement names can be set up r existing statements can be selected. Descriptin Descriptin f the VAT statement line. It is recmmended that yu use the descriptin frm the custms and tax authrities VAT statement frm. Type Determines what the VAT statement line includes. The fllwing ptins are available: Accunt Ttaling: Used when VAT is ttaled by using G/L Accunt entries. If this is selected, the Accunt Ttaling field must be filled in with the G/L accunt range t ttal. VAT Entry Ttaling: Used when VAT is ttaled by using VAT entries. If this is selected, yu must fill in the fllwing fields: - Gen. Psting Type - VAT Bus. Psting Grup - VAT Prd. Psting Grup - Amunt Type Rw Ttaling: Used t define the ttaling f ther rws in the VAT statement. If this is selected, the Rw Ttaling field must be filled in with the rw range t ttal. Descriptin: Used when the rw is t cntain nly text r symbls, fr example, a dtted line. Accunt Ttaling If Accunt Ttaling is selected in the Type field, specify the G/L accunt interval r a series f G/L accunt numbers t be included in the rw ttal. General Psting Type, VAT Bus. Psting Grup, and VAT Prd. Psting Grup If VAT Entry Ttaling is selected in the Type field, the apprpriate value fr the rw must be specified in each field. These fields determine the VAT entries that are ttaled frm the VAT Entry table. Amunt Type If VAT Entry Ttaling is selected in the Type field, specify whether the ttaling f VAT entries will cnsist f VAT amunts r the amunts n which the VAT is based. The ptins are as fllws: Blank: N amunt is ttaled. Amunt: The VAT Amunt in the selected VAT entries is ttaled in the rw. Base: The Base Amunt used t calculate the VAT in the selected VAT entries is ttaled in the rw. Unrealized Amunt: The Unrealized VAT Amunt in the selected VAT entries is ttaled in the rw. 8-30
Mdule 8: VAT Unrealized Base: The Unrealized Base Amunt used t calculate the Unrealized VAT in the selected VAT entries is ttaled in the rw. Rw Ttaling If Rw Ttaling is selected in the Type field, the rwnumber interval r the series f rw numbers that shuld be included in the rw ttal must be specified. Calculate With Determines whether Micrsft Dynamics NAV 2013 reverses the sign f VAT entries when it perfrms calculatins. The ptins are as fllws: Sign: Uses the sign f the VAT entry. Oppsite Sign: Uses the ppsite sign f the VAT entry. Print If this is selected, the rw is printed n the VAT Statement. Print With Determines whether amunts n the VAT statement are printed with their riginal sign r with the sign reversed. The ptins are the same as in the Calculate With field. New Page If this is selected, a new page begins immediately after this rw when the VAT statement is printed. Demnstratin: Define, Preview, and Print a VAT Statement Scenari: Phyllis, the accunting manager at CRONUS Internatinal Ltd., has t set up a new VAT statement fr Eurpean tax authrities. Based n the tax authrities requirement, this statement includes the fllwing: One descriptin rw heading One blank rw Three statement rws: Tw fr calculating VAT entries n 10 percent and 25 percent VAT One fr ttaling the VAT entry rws After Phyllis sets up the VAT statement, she runs a preview t cnfirm the setup and then prints the statement. Demnstratin Steps 1. Create a VAT statement by using VAT entries. a. On the Navigatin Pane, click Departments > Financial Management > Peridic Activities > VAT > VAT Statements. b. In the Name field, click the drp-dwn list t create a VAT statement. c. Click New. 8-31
Finance Essentials in Micrsft Dynamics NAV 2013 d. In the Name field, enter VAT Eurpe. e. In the Descriptin field, enter VAT Statement fr Eurpe. f. Click OK. g. On the first line, in the Descriptin field, enter Mnthly VAT statement. h. In the Type field, click the drp-dwn list and then select Descriptin. i. Skip the next line t create a blank line. j. In the third line, in the Rw N. field, enter REV1. k. In the Descriptin field, enter VAT Revenue Dmestic 25%. l. In the Type field, click the drp-dwn list and then select VAT Entry Ttaling. m. In the General Psting Type field, click the drp-dwn list and then select Sale. n. In the VAT Bus. Psting Grup field, click the drp-dwn list and then select Natinal.. In the VAT Prd. Psting Grup field, click the drp-dwn list and then select VAT25. p. In the Amunt Type field, click the drp-dwn list and select Amunt. q. D nt change the default settings in the remaining fields. T enter the furth and fifth lines, fllw these steps. a. Click the next line. b. In the Rw N. field, enter REV2. c. In the Descriptin field, enter VAT Revenue Dmestic 10%. d. In the Type field, click the drp-dwn list and then select VAT Entry Ttaling. e. In the General Psting Type field, click the drp-dwn list and then select Sale. f. In the VAT Bus. Psting Grup field, click the drp-dwn list and then select Natinal. g. In the VAT Prd. Psting Grup field, click the drp-dwn list and then select VAT10. h. In the Amunt Type field, click the drp-dwn list and then select Amunt. i. D nt change the default settings in the remaining fields. j. Click the next line. k. In the Rw N. field, enter REV3. l. In the Descriptin field, enter VAT Revenue Dmestic. 8-32
Mdule 8: VAT m. In the Type field, click the drp-dwn list and then select Rw Ttaling. n. In the Rw Ttaling field, enter REV1..REV2.. D nt change the default settings in the remaining fields. Reprting and Printing a VAT Statement T view a calculated VAT Statement befre yu print it, in the VAT Statement windw, click Preview in the ribbn. FIGURE 8.10: VAT STATEMENT PREVIEW WINDOW On the General FastTab f the VAT Statement Preview windw, specify the fllwing: The date filter The VAT statement that yu must preview The VAT entries that yu must include in the calculatins These selectins determine the lines that are cntained in the actual statement and the lines that appear in the preview. On lines where the Type field cntains VAT Entry Ttaling, yu can access the individual entries that make up the sum in the Clumn Amunt field by clicking the drp-dwn list. 8-33
Finance Essentials in Micrsft Dynamics NAV 2013 Peridically, a printed statement detailing the VAT transactins must be prvided t the tax authrities. T print the VAT Statement, fllw these steps. 1. In the VAT Statement windw, with the relevant batch t print selected, in the ribbn, click Print. 2. Click the Optins FastTab: Specify the statement perid in the Starting Date and Ending Date fields. Filter by VAT Entry type t print the fllwing: Ttals based n any cmbinatin f Open and, r Clsed VAT Entries. Entries inside r utside the perid. Rund the reprt t whle numbers. Print in additinal currency. 3. Click the VAT Statement Line FastTab. 4. Filter the printed rw numbers as is needed. 5. Click Preview t review the statement, r Print t print the statement. 6. Clse the pen windws. Nte: In additin t the VAT Statement reprt, mst cuntry specific versins f Micrsft Dynamics NAV cntain additinal VAT reprts, based n lcal VAT legislatin. VAT Settlement Peridically, the net VAT must be remitted t the tax authrities. T calculate this amunt, run the Calc. and Pst VAT Settlement batch jb. The fllwing list describes sme specifics that are related t this batch jb: Calculates VAT settlement f pen VAT entries in previus accunting perids. Finds all the VAT entries in the VAT Entry windw fr every VAT Psting Grup cmbinatin that is included in the filters in the batch jb. Use it t start the psting prcess r t print a test reprt. Run it as frequently as it is needed. 8-34
Mdule 8: VAT Running the Calc. and Pst VAT Settlement Batch Jb T run the Calc. and Pst VAT Settlement batch jb, fllw these steps. 1. On the Navigatin Pane, click Departments > Financial Management > Peridic Activities > VAT > Calc. and Pst VAT Settlement. 2. In the Starting Date and Ending Date fields, define the date range fr the VAT entries t be settled. 3. In the Psting Date field, define the psting date fr the settlement. 4. In the Dcument N. field, enter a unique number. This field is required t run the batch jb. 5. In the Settlement Accunt field, click the drp-dwn list and then select the G/L accunt that the net f the Purchase and Sales VAT entries are transferred t. 6. In the Shw VAT Entries check bx: Click t insert a check mark t display all VAT entries that are used t calculate each VAT Psting Grup settlement amunt. Leave it unchecked t display nly the ttal settlement fr each VAT Psting Grup. 7. In the Pst check bx, when yu print r preview the batch jb, d the fllwing: Click t insert a check mark t pst the transfer t the VAT settlement accunt autmatically. Leave it unchecked t print a test reprt. 8. Click t insert a check mark in the Shw Amunts in Add. Reprting Currency check bx fr reprt amunts t be shwn in the additinal reprting currency. 9. On the VAT Psting Setup FastTab, filter n the VAT business r prduct psting grups t be included in the batch jb, when it is needed. 8-35
Finance Essentials in Micrsft Dynamics NAV 2013 FIGURE 8.11: CALC. AND POST VAT SETTLEMENT WINDOW T preview r print the reprt, fllw these steps. 1. Click Preview t review the reprt, r click Print t print the VAT Settlement. 2. If the Pst check bx is checked, yu will receive a message that asks whether the VAT Settlement has t be calculated and psted. Click Yes t cntinue psting. Click N t prevent psting. 3. Clse the Print Preview windw. VAT Settlement Psting Results When yu pst the Calc. and Pst VAT Settlement batch jb, it clses pen VAT entries and transfers purchase and sales VAT amunts t the VAT settlement accunt. When VAT entries are clsed, the Clsed field n the VAT Entry is selected. The entry number f the settlement entry that clsed the VAT entry is autmatically 8-36
Mdule 8: VAT inserted in the Clsed by Entry N. field. This ccurs nly when the amunt must be transferred between G/L accunts. When a VAT amunt is transferred t a VAT settlement accunt, the accunt fr purchase VAT is credited and the accunt fr sales VAT is debited with the amunt frm the VAT statement perid. The accunt fr VAT settlement is credited with the net amunt (r, if the purchase VAT amunt is larger, it is debited). Nte: After VAT entries are psted and their status is clsed, they cannt be repened. Hwever, VAT reprts can be created frm these clsed entries. 8-37
Finance Essentials in Micrsft Dynamics NAV 2013 Mdule Review Mdule Review and Takeaways When ding business with EU cuntries, VAT must be reprted. The system can autmatically calculate VAT amunts fr sales, purchases and imprt. Micrsft Dynamics NAV 2013 can run all the necessary reprts related t VAT. T accurately reprt VAT t the apprpriate authrities, yu must understand the reprting capabilities that are available in Micrsft Dynamics NAV 2013. Test Yur Knwledge Test yur knwledge with the fllwing questins. 1. Where can yu nt set up prices including VAT? ( ) G/L accunts ( ) Custmer and vendr cards ( ) Sales and purchase dcuments ( ) Item cards 2. What happens when the Calc. and Pst VAT Settlement batch jb is psted? ( ) VAT entries are clsed and remved. ( ) Purchase VAT entries are applied with sales VAT entries. ( ) Purchase and Sales VAT amunts are transferred t the VAT settlement accunt. ( ) A payment line is suggested in the payment jurnal. 3. Which f the fllwing is nt an ptin in the VAT Calculatin Type field f the VAT psting setup? ( ) Nrmal VAT ( ) Full VAT ( ) Sales Tax ( ) EU VAT 8-38
4. What is true abut the VAT calculatin type Full VAT? Mdule 8: VAT ( ) Using Full VAT, the amunt is psted as a VAT base. ( ) Using Full VAT, the amunt is psted as a VAT amunt. ( ) Full VAT can nly be used in purchase and sales dcuments. ( ) Full VAT cannt be used in purchase and sales dcuments. 5. Which f the fllwing is nt required t adjust VAT amunts in sales and purchase dcuments? ( ) The VAT difference must be allwed fr sales and purchases. ( ) A maximum VAT crrectin amunt allwed must be specified. ( ) The Invicing FastTab must be selected n the Sales Order Statistics r Purchase Order Statistics windw. ( ) A minimum VAT crrectin amunt allwed must be specified. 8-39
Finance Essentials in Micrsft Dynamics NAV 2013 Test Yur Knwledge Slutins Mdule Review and Takeaways 1. Where can yu nt set up prices including VAT? ( ) G/L accunts ( ) Custmer and vendr cards ( ) Sales and purchase dcuments ( ) Item cards 2. What happens when the Calc. and Pst VAT Settlement batch jb is psted? ( ) VAT entries are clsed and remved. ( ) Purchase VAT entries are applied with sales VAT entries. ( ) Purchase and Sales VAT amunts are transferred t the VAT settlement accunt. ( ) A payment line is suggested in the payment jurnal. 3. Which f the fllwing is nt an ptin in the VAT Calculatin Type field f the VAT psting setup? ( ) Nrmal VAT ( ) Full VAT ( ) Sales Tax ( ) EU VAT 4. What is true abut the VAT calculatin type Full VAT? ( ) Using Full VAT, the amunt is psted as a VAT base. ( ) Using Full VAT, the amunt is psted as a VAT amunt. ( ) Full VAT can nly be used in purchase and sales dcuments. ( ) Full VAT cannt be used in purchase and sales dcuments. 8-40
Mdule 8: VAT 5. Which f the fllwing is nt required t adjust VAT amunts in sales and purchase dcuments? ( ) The VAT difference must be allwed fr sales and purchases. ( ) A maximum VAT crrectin amunt allwed must be specified. ( ) The Invicing FastTab must be selected n the Sales Order Statistics r Purchase Order Statistics windw. ( ) A minimum VAT crrectin amunt allwed must be specified. 8-41
Finance Essentials in Micrsft Dynamics NAV 2013 8-42