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Sales 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 the 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 creates proper VAT Entries. VAT % itself is defined for each VAT Product Posting Group.

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

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

Sales VAT Invoice​

###Creation of the Sales VAT Invoice in Business Central

  1. Select the Search icon, enter Sales VAT Invoice List, and then choose the related link.

  2. To create a new document, click “New”.

  3. Choose Document Type: Invoice (in all cases, except for the case of creating for Credit Memo or Refund).

  4. Enable “Advance VAT” if it’s an Advance VAT Invoice.

  5. Fill out the "Account No" field in the header. It fills out the "Account VAT Registration No" field automatically, according to the Customer's VAT Registration No.

  6. Choose "Period of operation", "Posting Date" and "Date for VAT Declaration". By default, fields are filled out according to the current date.

  7. Fill out Dimensions if used.

  8. Fill out "Reduce Advance VAT Amount" if necessary.

Note. When the value of the "Reduce Advance VAT Amount" field is filled out and a VAT Invoice is attached to the Declaration using the "Attach to Declaration" button, the value will be added to the "Reduced Advance VAT Amount". If the VAT Invoice is attached to the declaration using partial amounts, upon next clicking on Attach to Declaration, the next amount from the "Reduce Advance VAT Amount" field will be added to "Reduced Advance VAT Amount".

  1. Fill out the lines in Sales VAT Invoice Lines:

  2. Choose "Type" and "No" manually. It fills out the "Description" field; if "RS.GE Cross Reference" is defined, fill out the "RS.GE Description" field too.

  3. "VAT Bus. Posting Group", "VAT Prod. Posting Group", "Unit of Measure Code", "RS.GE Unit of Measure", "RS.GE Unit of Measure Desc" are also filled out according to "No." (Item, Fixed Asset, etc.) if they are defined; if not, fill them out manually.

  4. Fill out the quantity and price/amount.

  5. Fill out the “Sales VAT Invoice” tab: choose "Source Type" and "Cust. Ledger Entry No.", which is filtered by Account No (Customer’s No.).

  6. If on 'Revenue Service Integration Setup' page Shipment waybill Assignment=YES, all manually created Sales vat invoices have automatically linked shipment waybills of the posted sales document. For combinations of waybills:

Status (58) = Activ`e or Completed

State (59) = Admissible or Received

Type (2) = With Transportation, Without Transportation, Return.

  1. If on 'Revenue Service Integration Setup' page Shipment waybill Assignment=NO, waybills need to be assigned manually. To assign a Waybill, click “Assign Waybill” and choose the Waybill filtered by Account No.

Note. If a user deletes the waybill in the system, it is necessary to unassign the waybill in the Sales VAT Invoice manually.

  1. To assign an Advance VAT Invoice, click “Assign VAT Invoice” and choose Advance VAT Invoice filtered by Account No.

###Working with the Sales VAT Invoice Document in Business Central

Exporting of the Sales VAT Invoice to RS.GE​

When the waybill is newly created in BC and it is not exported to the RS.GE portal, the external status is "Draft" and the internal status is "Open".

If we want to export a Sales VAT Invoice as a draft to the RS.GE:

  1. Click "Export VAT Invoice". After this, the Sales VAT Invoice gets unique values of “Invoice ID”, “F Series” and “F Number” from RS.GE.

####Sending the Sales VAT Invoice to the Customer

To send a Sales VAT Invoice:

  1. Click "Send invoice". The external status changes to “Sent” and the internal status changes to “Pending Approval”.

If the customer approves the Sales VAT Invoice:

  1. Update the status of the document by clicking the "Load Updates" button. It changes the status as follows: External Status - “Approved”, Internal Status - “Approved”.

If the customer rejects the Sales VAT Invoice:

  1. Update the status of the document by clicking the "Load Updates" button. It changes the status as followso: External Status - “Rejected”, Internal Status – “Open”.

Deleting the Sales VAT Invoice​

On the Sales VAT Invoice, a restriction has been added to prevent deleting the VAT invoice if the Invoice ID is filled (sent to the revenue service rs.ge). Additionally, a new 'Delete' function has been added, allowing the invoice to be marked as deleted in the system and on the revenue service for the statuses: Draft, Sent, and Rejected.

####Correction of a Sales VAT Invoice

A user can correct a Sales VAT Invoice only if the current status of the document is "Sent" or "Approved".

Making corrections when the Sales VAT Invoice Status is "Sent":

  1. Click “Create Adjustment”, and the system will create a new Sales VAT Invoice.

  2. Click "Next. Adjustment". External Status - “Draft”, Internal Status – “Open”. Make the necessary correction in the Sales Vat Invoice and after that, click "Send Invoice".

  3. In Prev. Adjustment, the external status changes to “Deleted” and the internal status changes to “Completed”.

Making corrections when the Sales VAT Invoice status is "Approved":

  1. Click "Create Adjustment".

  2. Choose the adjustment reason from the list, click “OK”. The system will create a new Sales VAT Invoice.

  3. Click Next. Adjustment. Statuses: External Status - “Draft of Correction”, Internal Status – “Open”.

  4. Make the necessary corrections, click “Send Invoice”. It changes the statuses as follows: External Status - “Sent Correction”, Internal Status – “Pending Approval”

  5. In Prev. Adjustment, the external status changes to “Primary” and the internal status changes to “Completed”.

If the customer approves it, the user should update the status of the document by clicking "Load Updates". The Sales VAT Invoice will change its status as follows: External Status - “Approved Correction”, Internal Status – “Approved”.

If the customer rejects it, the user should update the status of the document by clicking "Load Updates". The Sales VAT Invoice will change its status as follows: External Status - “Correction Rejected”, Internal Status – “Open”.

####Canceling a Sales VAT Invoice

To cancel a Sales VAT Invoice from BC, the user should click "Cancel" and, before the customer approves the cancelation, the status of the document will be as follows: External Status - “Canceled”, Internal Status – “Pending Approval”.

  1. If the customer approves it, the user should update the status of the document by clicking "Load Updates". The Sales VAT Invoice will change its status as follows: External Status - “Approved Cancel”, Internal Status – “Approved”.

  2. If the customer rejects it, the user should update the status of the document by clicking "Load Updates". The Sales VAT Invoice will change its status as follows: External Status - “Rejected”, Internal Status – “Open”.

####Import of a Sales VAT Invoice from the RS.GE portal

It’s possible to import Sales VAT Invoices from the RS.GE portal according to a period using the „Load VAT Invoices” button, or a specific Sales VAT Invoice with ID using the „Load VAT Invoice” button.

The system gets the "Account No." according to "VAT Registration No.", "Period of Operation" and "Registration Date " from the portal. Values in the lines are filled out from the portal. If the system finds a matching value, it fills it out in lines, otherwise they are left blank.

Note. If the user changes a Sales VAT Invoice on the RS.GE portal, it can be updated on the Business Central side by clicking the "Load Updates" button.

Note. A user can delete the Sales VAT Invoice from BC with the "Delete" button. And if the user deletes a VAT Invoice on the RS.GE portal (when the VAT Invoice's status is “Sent”), the system updates the status as follows: External Status - “Deleted”, Internal Status – “Completed”.

Automatic generation of Sales VAT Invoices and Correction Sales VAT Invoices​

The system facilitates bulk creation of Sales VAT Invoices based on specified periods and customers, taking their VAT Payer status into account. If in launch page "Create for Vat Payer only" in enable, system creates VAT Invoice only for VAT Payer Customers, specified on Customer's card. If "Create for Vat Payer only" is desabled, system creates VAT Invoice for Customers, where VAT Payer and VAT Non-Payer = YES. Furthermore, upon generating a VAT Invoice, the system conducts an analysis to check for existing VAT invoices and their statuses:

  1. If a Posted Sales Invoice already has a corresponding VAT Invoice, no action is taken.

  2. If a Posted Sales Invoice lacks both a related Credit Memo and VAT Invoice, the system generates a Sales VAT Invoice draft. This draft is created similarly to the process initiated by clicking the "Create VAT Invoice" button. It transfers lines from the sales document to the VAT invoice and fills related Customer Ledger Entries as the source.

  3. In the case where a posted sales invoice lacks a VAT Invoice but has a related Credit Memo, the system creates a Sales VAT Invoice draft accounting for the remaining quantity and amount (Sales - Credit Memo). It fills related Customer Ledger Entries of the Posted Sales Invoice and Credit Memo as the source for the Sales VAT Invoice.

  4. If a posted sales invoice has a VAT Invoice (with an External Status other than "Approved") and a related credit memo, the system creates a Sales VAT Invoice draft accounting for the remaining quantity and amount (Sales - Credit Memo). It fills related Customer Ledger Entries of the Posted Sales Invoice and Credit Memo as the source for the Sales VAT Invoice.

  5. When a Posted Sales Invoice has both a related Credit Memo and VAT Invoice (with the "Approved" External Status), the system creates a Correction Sales VAT Invoice. It takes all lines from the Sales VAT Invoice, incorporates adjustments, checks items in the related credit memo, and corrects quantity and amount where similarities are found.

  6. If a Posted Sales Invoice has a VAT Invoice (with the "Approved" External Status) and multiple related Credit Memos, the system checks for the existence and status of Correction VAT Invoices on the credit memos. If an "Approved Correction" exists, a new Correction Sales VAT Invoice is created based on the approved correction. It follows the same correction logic, adjusting quantity and amount based on similarities found in related credit memos. If the External Status is not "Approved Correction," a new Correction Sales VAT Invoice is created using similar logic, but any previous correction VAT invoice is deleted.

Note In addition, the system allows for the creation of combined VAT invoices, consolidating transactions based on specified periods and customers.

Steps for the automatic creation of Sales VAT invoices:

  1. Search for the Customer VAT Invoice and follow the related link.
  2. Click on the "Create VAT Invoice" button.
  3. Specify the period of operation.
  4. Choose a specific customer or leave it empty to generate VAT invoices for all VAT Payer customers.
  5. Enable the "combined" field if a combined VAT invoice is desired.
  6. Click "OK" to complete the process.

Note If on 'Revenue Service Integration Setup' page Shipment waybill Assignment=YES, all combined or non-combined created Sales vat invoices have automatically linked shipment waybills of the posted sales document. If Shipment waybill Assignment=NO, waybills aren't assigning automatically to created sales vat invoices. Assignment works For combinations of waybills:

Status (58) = Activ`e or Completed

State (59) = Admissible or Received

Type (2) = With Transportation, Without Transportation, Return.

A new Boolean field "Do not create VAT Invoice Line" has been introduced on the G/L Account. When this field is enabled for a specific G/L Account, any lines associated with that account will not be transferred from the Posted Sales Invoice to the Sales VAT Invoice upon creation of a Sales VAT Invoice.

This feature is applicable in the following scenarios:

  1. From Posted Sales Invoice: When creating a Sales VAT Invoice from a Posted Sales Invoice, via 'Create VAT Invoice'

  2. From Customer VAT Invoice Check: Similarly, when a Sales VAT Invoice is created via the Customer VAT Invoice Check report, with 'Create VAT Invoice' function button.

Creation of a VAT Invoice on Open Statement​

After closing a workday in LC Central, the next step involves creating an open statement. Once the open statement is generated, users have the ability to create VAT invoices based on the posted open statement by clicking the "Create VAT Invoice" button. This process allows for the seamless generation of VAT invoices according to the customer's tax payer status, utilizing the information and transactions recorded in the open statement for accurate and compliant invoicing.

Service Unit of measure in Sales VAT Invoice List​

In 'Revenue Service Integration Setup' page, a field 'Service UOM' has been added, which is related to the Unit of Measure list. When sending a Sales VAT Invoice to Revenue Service (RS.GE), the system checks the Unit of Measure in the Sales VAT Invoice Line, if the RS.GE Unit of Measure is 'Service UOM', the system sends a quantity of 0 to the portal.

##Creation of the Sales VAT Invoice in Service

Modification Purpose​

The creation of a VAT Invoice from Posted Service Invoices was implemented for customers using the service module. This modification allows VAT Invoices to be generated directly from Posted Service Invoices. Initially, VAT Invoices were created manually by clicking the "Create VAT Invoice" button.

Modification Details​

  1. A new button, "Create VAT Invoice," was added on posted Service Inovice to initiate the creation of the VAT Invoice.
  2. Upon clicking the "Create VAT Invoice" button on the Service Invoice Header, a Sales VAT Invoice is created based on the Posted Service Invoice. All lines from the Posted Service Invoice are copied into the Sales VAT Invoice. The Quantity and Amount fields are populated at first, and prices are calculated accordingly.
  3. The related Customer Ledger Entry is populated from the Posted Service Invoice and displayed in the Source tab and factbox on the Sales VAT Invoice List.
  4. A factbox for Sales VAT Invoice was added, showing the related Sales VAT Invoice when assigned, similar to the functionality in the Posted Sales Invoice List.
  5. The field "Man VAT Invoice" was added to the Service Invoice List to show the VAT Invoice No. if the Posted Service Invoice is the source of the Sales VAT Invoice, following the same logic as the Main VAT Invoice field on Posted Sales Invoices.
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