In Japan, consumption tax is levied when goods and services are provided. Therefore, at the time of receiving advance payments, consumption tax is not applied.
At the time of receiving advance payments:
Debit: Cash deposits 110 Credit: Advance payments 110
At the time of selling goods:
Debit: Advance payments 110 Credit: Sales 100
Consumption tax payable 10
However, in D365BC (Subscription billing), the following journal entries are recorded:
At the time of receiving advance payments:
Debit: Cash deposits 110 Credit: Advance payments 100
Consumption tax payable 10
At the time of selling goods:
Debit: Advance payments 100 Credit: Sales 100
It would be helpful if you could develop an optional function in accordance with the processing of Japan's consumption tax law.
Business Central Team (administrator)
Thank you for this suggestion! Currently this is not on our roadmap. We are tracking this idea and if it gathers more votes and comments we will consider it in the future. Best regards, Business Central Team