Business process/setup

Company is based in UK but this might occur in different entities location

Company use Date of VAT register global feature: Tax point date (Date of VAT register) - Finance | Dynamics 365 | Microsoft Learn

Company run ‘settle and post” based on Date of VAT register

Company post vendor invoices with the automatic fill of Date of VAT register as document date

Due to the delay in receiving invoices there might be documents that are posted in current month but with date of vat register in one of previous periods, example, Posting date: 10/30/2023, Date of VAT register (document date) 15/07/2023

Till the document is posted in the system ‘settle and post sales taxes” has been run for all previous periods – original and as well correction. 

User do not want to run ‘settle and post’ for each month, but identify all transactions that has not been included in settlement, change the Date of VAT register to current period and include in last declaration. 

NOTE: Running ‘settle and post” for each previous month is time consuming, not efficient and require to submit corrections for all periods to Tax Office.

Issues

Issue 1: Not easy to find what transactions have not been included in any of previous ‘settle and post sales taxes and find all that has not been included. 

Issue 2: Not able to find out from where the difference is coming on VAT account if we check Trial Balance, Accounting source explorer. 

Current way of control

Right now, user must run 2/3 (sales tax list, sales tax transactions) reports and filter transactions on “Maintain VAT register transactions” to identify the transactions and discrepancies.

Go voucher by voucher to check if it was included in ‘settle and post”

Note, that we can only count on the “version” on the sales tax transactions/Maintain VAT register transactions which is not sufficient, because in each previous period ‘settle and post’ could be run several time (original and latest corrections), so the version for each month will be different and we cannot use this for filtering. 

There is no other information about if and where the sales tax transaction ahs been included in ‘settle and post” periodic task. 

Possible improvements: 

Possible improvements that will help to reconcile ledger and sales tx sub ledger and also identify transactions that has been posted after the ‘settle and post”

1. Create 2 new columns in table — VAT Settlement Voucher and VAT Settlement Date. 

2. Populate data to 2 new columns When using Settle and post sales tax process into TaxTrans. 

3. Add these 2 new columns to posted Sales Tax, Maintain VAT Register Transactions and Voucher Transactions. 

4. Add Date of VAT Register to Accounting Source Explorer, Ledger Settlements and Voucher transactions. 

5. Add Document Date to Maintain VAT Register Transactions 

6. Block functionality to change Date Of VAT Register after Settle and post sales tax was done 

(VAT Settlement Voucher column is filled) in Maintain VAT Register transactions.