Description of Issue:

When using the "Calculate and Post VAT Settlement" function, VAT amounts are correctly converted and posted in the base currency (USD), and the reporting currency aligns with the amounts shown in the VAT Statement for the Representative. This behavior is correct and expected.

However, when using the "Post VAT Group Settlement" function (provided by the "VAT Group Management" extension, which extends the standard VAT Settlement functionality), the system does not convert the VAT amounts to the base currency. Instead, it posts the exact amount (e.g., -6,210.00 EUR) as USD, resulting in incorrect postings.

Implication:

This leads to incorrect general ledger postings, as the foreign currency amount is being treated as base currency, affecting financial reporting and compliance.

Expected Behavior:

The "Post VAT Group Settlement" function should apply the same currency conversion logic as the standard "Calculate and Post VAT Settlement", i.e.:

• Convert the foreign currency amount from the VAT statement (EUR) into the company's base currency (USD) using the appropriate exchange rate.
• Post the converted amount to the VAT settlement account in USD.

Suggestion to Microsoft:

Please review the implementation of the "Post VAT Group Settlement" in the "VAT Group Management" extension. It appears that the logic for currency conversion is either missing or not aligned with the standard VAT Settlement process. The settlement should always respect the base currency of the local company when posting to the G/L, regardless of the original VAT statement currency.

Recommendation:

• Ensure that the extension uses the same currency conversion routines as the standard VAT settlement process.
• Alternatively, expose a configuration option to allow companies to enforce currency conversion when posting group settlements.