When we are entering a Purchase Invoice for a Vendor paid by IC Partner A for an expense with taxes to be transfered to IC Partner B, the intercompany transaction with taxes is posted incorrectly in Partner B.

Let me explain the situation :

To be able to take care of the taxes in the destination company there is no way to make this possible by manually changed the IC General Journal destination IC Parter generated after the purchase invoice posted in the originating IC Partner.

Example :

I receive an invoice with taxes from a vendor to be paid by IC Partner A but we need that Partner B is responsible for taxes and expense.

We enter the invoice related to a GL account with Prod Posting group set in the GL Card to reverse the taxes! I can’t understand why this field for the taxes but if it is empty, the taxes are not reversed in IC Partner A.

On the Purchase Invoice Line, we indicate the GL account, then IC Partner Code B, IC partner reference, the amount and taxes information.

The Journal entry will consider the exact amount of IC transaction with the taxes and the expense account without the taxes in Partner A, that is exactly what we need. 

In Partner B company, on IC General Journal, we will get IC transaction GL account with the total amount with taxes on the line and then applied to the GL expense account indicated in the source Purchase invoice document with taxes included that is not what we are expecting.

Business Central by default can’t extract the taxes automatically when it come into the IC General journal.

So as we can do it from a General Journal, we have decided to personalize the IC General Journal by adding Tax Area, Tax group code, Tax liable and Posting Type. The Tax aera and tax liable were not available by default only from the profile.

It is not possible to use them to make sure we extract the tax with tax information.

So, the only solution is to each time we have an IC transaction with taxe, we must change the line amount and add new lines to add GL Tax account instead of Tax aera code on IC general Journal.

The problem is mostly IC Tax setup is not existing or to link a tax area code from a IC partner to another and let the system calculate this automatically.

Could you improve IC Taxes with IC transactions?