Purchase VAT Invoice

VAT Invoice is a document of strict accounting in the form approved by the Minister of Finance of Georgia, which confirms the fact of a transaction subject to VAT. A person who is not registered as a VAT payer is not entitled to issue an invoice. A person registered as a VAT payer is obliged to issue a tax invoice and submit it to the recipient, regardless of whether the latter is a tax payer or not, no later than the second day after the taxable transaction has been performed, if there is a request from the recipient of goods (services).

In Business Central Vendors and Customers are defined as VAT Payers based on selected “VAT Business Posting Group”. VAT Product Posting groups are assigned to Items and a combination of VAT Business and VAT Product Posting groups through VAT Posting Setup created proper VAT Entries. VAT % itself is defined for each VAT Product Posting Group.

Any invoice, that is created for the customer / by the vendor, that contains such combination of VAT Posting Groups, for which there is VAT % value assigned, system calculates VAT. After invoice is posted, it is possible to create automatically or manually - Sales VAT Invoice (with Source Type – Invoice) from Sales invoice, Purchase VAT Invoice (with Source Type – VAT Invoice) from Purchases. Some of the Sales and Purchase VAT Invoices, Have Source Type – Payment, that means they were created by making advance payments to the sales / purchase order.

---

Setup:

1. For integration with Georgian Revenue Service (RS.GE) we should have filled field VAT registration No. on the page Company Information.

2. Fill in the fields RS.GE Login and RS.GE Password on the page User Setup for users with the credentials of an active RS.GE user. If one out of the users in the list has the incorrect user name or password, none of them will be able to work with integration.

3. On the page Tax Setup GE should be filled line section RSGE Integration with the relevant information.

4. On the page RSGE Unit Of Measure Setup user can match the unit of measure of BC to units of measure on RS.GE.

5. On the page RSGE Unit Of Measure Setup by clicking on the button “Show Units”, user can see the list of the units of measure (RS.GE Unit Of Measure), which can be loaded from RS.GE.

6. On the page RSGE Cross Reference, user can add barcodes for concrete vendor’s items, to match them with the ones in BC.

7. General Ledger Setup page, “Accounting Regulation” field and VAT Business Posting Group page, “VAT Invoice Creation” field, define how VAT Invoice is created.

8. All examples are created in condition that the value in Accounting Regulation field on General Ledger Setup page is “Georgia”.

---

Purchase VAT Invoice

When there is the business process like purchase, we, as a users, are not able to create Purchase VAT Invoice on the Business Cental side, because this kind of VAT Invoice should be sent by vendor to the customer and we are representing customers in this case.

---

---

###Import of the Purchase VAT Invoice in Business Central from RS.GE

To import Purchase VAT Invoice into BC from RS.GE portal:

1. Choose the icon, enter Purchase VAT Invoice List, and then choose the related link.

2. Click the button „Load VAT Invoices” to import Purchase VAT Invoices according to the period, or click the button „Load VAT Invoice” for impoting the specific Purchase VAT Invoice with ID.

3. Connect source document to Purchase VAT Invoice, fill “Purchase VAT Invoice Source” tab: choose Source Type and Vendor Ledger Entry No. which is filtered by Account No (Customer’s No.).

4. Assigning Waybill, click “Assign Waybill” and choose Waybill, filtered by Account No.

5. Click “Assign VAT Invoice” and choose "Advance VAT Invoice", filtered by "Account No.", if it exists.

Note. If user deletes waybill in system, need to unassign waybill in Purchase VAT Invoice manually.

Note
To automatically download Purchase VAT Invoices, you can set up Job Queue Entry. For this you need:

• on the Tax Setup GE page, specify the date formula for loading Purchase VAT Invoices in the corresponding field,
• go to the Job Queue Entries page,
• select and open an entry card, in which the object to run is the Load Purchase VAT Invoices report,
• set the recurrence of the job,
• set the job status to Ready.

###Approving of the Purchase VAT Invoice

After user imported Purchase VAT Invoice with External status “To be Approved” and Internal status “Pending Approval”, it should be accepted or rejected.

If user wants to accept the Purchase VAT Invoice:

1. Open the imported Purchase VAT Invoice and click on the button "Approve" given in the Purchase VAT Invoice's ribbon.

This action will change the statuse of the Purchase VAT Invoice, External Status - “Approved”, Internal Status - “Approved”.

If user wants to reject the Purchase VAT Invoice:

1. Open the imported Purchase VAT Invoice and click on the button "Reject" given in the Purchase VAT Invoice's ribbon.

This action will change the statuse of the Purchase VAT Invoice, External Status - “Canceled”, Internal Status - “Pending Approval”

User have availability to approve or reject Purchase VAT Invoices from the list.

###Approving of the Purchase VAT Invoice Correction

If Vendor corrected Purchase VAT Invoice approved by customer.

1. Update the Purchase VAT Invoice with the button "Load Updates" in Primary VAT Invoice, or imports Primary VAT Invoice and System will creates two Purchase VAT Invoices:

• Prev. Adjustment with External Status - “Primary”, Internal Status - “Completed”.

• Next. Adjustment with External status - “Corrected”, Internal status - “Pending Approval”.

And if user wants to approve the correction made by vendor:

2. Click the button “Approve”

After this action Purchase VAT Invoice gets statuses: External status - “Approved Correction”, Internal status - “Approved”.

But if user wants to reject the correction made bby vendor:

1. Click the button “Reject”.

After this action Purchase VAT Invoice gets statuses: External status - “Correction Rejected”, Internal status - “Open”.

###__Approving of the Purchase VAT Invoice Cancelation __

If Vendor cancels Purchase VAT Invoice approved by customer.

1. Update the Purchase VAT Invoice with the button "Load Updates" located in the ribbon.

Purchase VAT Invoice gets the statuses: External Status - “Cancelled”, Internal Status - “Pending Approval”

2. Click the button “Approve”.

Purchase VAT Invoice will get statuses: External Status - “Approved Cancel”, Internal Status - “Approved”

###Updating the status of the deleted Purchase VAT Invoice

If vendor deleted the Purchase VAT Invoice (when Invoice has status “To be Approved”)

1. Click the button "load Updates".

VAT Invoice gets statuses: External Status - “Deleted”, Internal Status - “Completed”

Updating the status of the Purchase VAT Invoice, that doesn't exist on portal of Revenue Service (Rs.ge)

When vendor corrects Purchase VAT Invoice (Invoice status is “To be Approved” or "Corrected"), Invoice ID changes on portal. Upon updating Purchase VAT Invoice in system, via actions: Load Updates, Load Invoices, Load Invoice, Approve, Reject, system changes External Status into Deleted and shows message "VAT Invoice with such ID doesn't exist".

Note. There’s possibility to print VAT Invoices from system, via clicking "Print" button in "Navigate" past tab.