Purchase VAT invoices

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 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 combination of VAT Posting Groups, for which there is VAT % value assigned. After the invoice is posted, it is possible to automatically or manually create a 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, which means they were created by making advance payments to the sales / purchase order.

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

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Purchase VAT Invoice

When there is a business process like purchase, we, as users, are not able to create a 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.

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

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

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

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

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

4. Assigning a Waybill: click Assign Waybill and choose the Waybill filtered by Account No.

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

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

Note
To automatically download Purchase VAT Invoices, you can set up Job Queue Entry. To do it:

• on the Revenue Service Integration Setup 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 the user has imported a Purchase VAT Invoice with “To be Approved” external status and “Pending Approval” internal status, it should be accepted or rejected.

If the user wants to accept the Purchase VAT Invoice:

1. Open the imported Purchase VAT Invoice and select "Approve" in the Purchase VAT Invoice's ribbon.

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

If the user wants to reject the Purchase VAT Invoice:

1. Open the imported Purchase VAT Invoice and select "Reject" in the Purchase VAT Invoice's ribbon.

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

The user can approve or reject Purchase VAT Invoices from the list.

Approving of the Purchase VAT Invoice Correction

If a Vendor corrects a Purchase VAT Invoice approved by a customer:

1. Update the Purchase VAT Invoice with the "Load Updates" button in the Primary VAT Invoice, or import the Primary VAT Invoice, and the system will create two Purchase VAT Invoices:

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

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

If the user wants to approve the correction made by the vendor:

2. Click the “Approve” button.

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

If the user wants to reject the correction made by the vendor:

1. Click the “Reject” button.

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

Approving of the Purchase VAT Invoice Cancelation

If the Vendor cancels the Purchase VAT Invoice approved by the customer:

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

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

2. Click the "Approve” button.

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

Updating the status of the deleted Purchase VAT Invoice

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

1. Click the "Load Updates" button.

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

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

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

Note. There’s a possibility to print VAT Invoices from the system by clicking "Print" in the "Navigate" FastTab.

Attaching a Purchase VAT Invoice Source automatically

The system provides the opportunity of attaching source in two ways:

• Through Waybill: the system assigns a related source (Posted Purchase Invoice) according to Waybill No. that is linked to the Purchase VAT Invoice. If there are several assigned waybills for the Purchase VAT Invoice, the system assigns all related sources.
• Through Amount: the system assigns source (Posted Purchase Invcoie) according to the amount including VAT. If there are several matching documents, the system doesn't assign anything.

1. Open Purchase VAT Invoice or select Purchase VAT Invoices from the list.
2. Click "Assign Document".
3. Choose the option.
4. Click "OK"