The Non Deductible VAT is calculated incorrectly when the "VAT Calculation Type" setting is set to "Reverse Charge VAT" in the Belgian version of Microsoft Dynamics NAV 2009 SP1

Applies to: Dynamics NAV 2009

This article applies to Microsoft Dynamics NAV for the following countries and language locales.
  • Belgium (French) (fr-be)
  • Belgium (Dutch) (nl-be)

Symptoms


Assume that the "VAT Calculation Type" setting is set to Reverse Charge VAT in the Belgian version of Microsoft Dynamics NAV 2009 with Service Pack 1 (SP1). When you post a purchase invoice or a purchase credit note, the Non Deductible VAT is calculated to credit from payables account. However, the Non Deductible VAT should be calculated to credit from the Reverse Charge VAT account.

Resolution


Hotfix information

A supported hotfix is now available from Microsoft. However, it is only intended to correct the problem that is described in this article. Apply it only to systems that are experiencing this specific problem. This hotfix may receive additional testing. Therefore, if you are not severely affected by this problem, we recommend that you wait for the next Microsoft Dynamics NAV service pack or the next version that contains this hotfix.

Note In special cases, charges that are ordinarily incurred for support calls may be canceled if a Technical Support Professional for Microsoft Dynamics and related products determines that a specific update will resolve your problem. The usual support costs will apply to additional support questions and issues that do not qualify for the specific update in question.




Installation information

Microsoft provides programming examples for illustration only, without warranty either expressed or implied. This includes, but is not limited to, the implied warranties of merchantability or fitness for a particular purpose. This article assumes that you are familiar with the programming language that is being demonstrated and with the tools that are used to create and to debug procedures. Microsoft support engineers can help explain the functionality of a particular procedure, but they will not modify these examples to provide added functionality or construct procedures to meet your specific requirements.

Note Before you install this hotfix, verify that all Microsoft Navision client users are logged off the system. This includes Microsoft Navision Application Services (NAS) client users. You should be the only client user who is logged on when you implement this hotfix.

To implement this hotfix, you must have a developer license.

We recommend that the user account in the Windows Logins window or in the Database Logins window be assigned the "SUPER" role ID. If the user account cannot be assigned the "SUPER" role ID, you must verify that the user account has the following permissions:
  • The Modify permission for the object that you will be changing.
  • The Execute permission for the System Object ID 5210 object and for the System Object ID 9015 object.


Note You do not have to have rights to the data stores unless you have to perform data repair.

Code changes

Note Always test code fixes in a controlled environment before you apply the fixes to your production computers.

To install this hotfix, change the code in the following objects:
  • The Invoice Post. Buffer table (49)
  • The Gen. Jnl.-Post Line codeunit (12)
  • The Purch.-Post codeunit (90)
To do this, follow these steps:
  1. Change the code in the PreparePurchase function in the Invoice Post. Buffer table (49) as follows:
    Existing code
    ...
    "Job No." := PurchLine."Job No.";
    IF (Type = Type::"G/L Account") OR (Type = Type::"Fixed Asset") THEN BEGIN // Delete this line.
    "Line No." := PurchLine."Line No.";
    "Posting Description" := PurchLine.Description; // Delete this line.
    END ELSE BEGIN // Delete this line.
    PurchHeader.GET(PurchLine."Document Type",PurchLine."Document No.");
    ...
    Replacement code
    ...
    "Job No." := PurchLine."Job No.";
    "Line No." := PurchLine."Line No.";
    IF (Type = Type::"G/L Account") OR (Type = Type::"Fixed Asset") THEN // Add this line.
    "Posting Description" := PurchLine.Description // Add this line.
    ELSE BEGIN // Add this line.
    PurchHeader.GET(PurchLine."Document Type",PurchLine."Document No.");
    ...
  2. Change the code in the Gen. Jnl.-Post Line codeunit (12) as follows:
    1. On the View menu, click C/AL Globals, and then add the following variable on the Variables tab:
      • Name: VATAmtWithoutNonDeduct
      • DataType: Decimal
    2. Change the code of the InsertVAT function as follows:
      Existing code
      ...
      VATPostingSetup."VAT Calculation Type"::"Reverse Charge VAT":
      BEGIN
      IF UnrealizedVAT THEN BEGIN
      VATPostingSetup.TESTFIELD("Purch. VAT Unreal. Account");
      InitGLEntry(
      VATPostingSetup."Purch. VAT Unreal. Account",
      GLEntryVATAmount,SrcCurrGLEntryVATAmt,TRUE,TRUE);
      InsertGLEntry(TRUE);
      VATPostingSetup.TESTFIELD("Reverse Chrg. VAT Unreal. Acc.");
      InitGLEntry(
      VATPostingSetup."Reverse Chrg. VAT Unreal. Acc.",
      -GLEntryVATAmount,-SrcCurrGLEntryVATAmt,TRUE,TRUE); // Delete this line.
      InsertGLEntry(TRUE);
      END ELSE BEGIN
      VATPostingSetup.TESTFIELD("Purchase VAT Account");
      InitGLEntry(
      VATPostingSetup."Purchase VAT Account",
      GLEntryVATAmount,SrcCurrGLEntryVATAmt,TRUE,TRUE);
      InsertGLEntry(TRUE);
      VATPostingSetup.TESTFIELD("Reverse Chrg. VAT Acc.");
      InitGLEntry(
      VATPostingSetup."Reverse Chrg. VAT Acc.",
      -GLEntryVATAmount,-SrcCurrGLEntryVATAmt,TRUE,TRUE); // Delete this line.
      InsertGLEntry(TRUE);
      ...
      Replacement code
      ...
      VATPostingSetup."VAT Calculation Type"::"Reverse Charge VAT":
      BEGIN
      IF "VAT Posting" = "VAT Posting"::"Automatic VAT Entry" THEN // Add this line.
      VATAmtWithoutNonDeduct := GLEntryVATAmount; // Add this line.
      IF UnrealizedVAT THEN BEGIN
      VATPostingSetup.TESTFIELD("Purch. VAT Unreal. Account");
      InitGLEntry(
      VATPostingSetup."Purch. VAT Unreal. Account",
      GLEntryVATAmount,SrcCurrGLEntryVATAmt,TRUE,TRUE);
      InsertGLEntry(TRUE);
      VATPostingSetup.TESTFIELD("Reverse Chrg. VAT Unreal. Acc.");
      InitGLEntry(
      VATPostingSetup."Reverse Chrg. VAT Unreal. Acc.",
      -VATAmtWithoutNonDeduct,-SrcCurrGLEntryVATAmt,TRUE,TRUE); // Add this line.
      InsertGLEntry(TRUE);
      END ELSE BEGIN
      VATPostingSetup.TESTFIELD("Purchase VAT Account");
      InitGLEntry(
      VATPostingSetup."Purchase VAT Account",
      GLEntryVATAmount,SrcCurrGLEntryVATAmt,TRUE,TRUE);
      InsertGLEntry(TRUE);
      VATPostingSetup.TESTFIELD("Reverse Chrg. VAT Acc.");
      InitGLEntry(
      VATPostingSetup."Reverse Chrg. VAT Acc.",
      -VATAmtWithoutNonDeduct,-SrcCurrGLEntryVATAmt,TRUE,TRUE); // Add this line.
      InsertGLEntry(TRUE);
      ...
    3. On the View menu, click C/AL Globals, and then add a function "SetVATAmtWithoutNonDeduct" on the Functions tab. After that, click Local and then add the following parameter on the Variables tab:
      • Var: Do not select the check box.
      • Name: VATAmtForReverseChargeVAT
      • DataType: Decimal
      Then, add the following code in the created "SetVATAmtWithoutNonDeduct" function:
      VATAmtWithoutNonDeduct := VATAmtForReverseChargeVAT; 
  3. Change the code in the Purch.-Post codeunit (90). To do this, follow these steps:
    1. On the View menu, click C/AL Globals, and then add the following variable on the Variables tab:
      • Name: TotalNonDeductVATForRChargeVAT
      • DataType: Decimal
      • Name: TotalNonDeductVATFCYForRCVAT
      • DataType: Decimal
      • Name: PurchLineForReverseChargeVAT
      • DataType: Record
      • Subtype: Purchase Line
      • Click Properties on the View menu, set the Temporary property to Yes.
      • Name: VATAmtWithoutNonDeduct
      • DataType: Decimal
    2. Change the code in the OnRun trigger as follows:
      Existing code 1
      ...

      PurchLine.CalcVATAmountLines(1,PurchHeader,CombinedPurchLineTemp,TempVATAmountLine);

      IF PurchLine.FINDSET THEN
      REPEAT
      JobPurchLine := PurchLine;
      ...
      Replacement code 1
      ...

      PurchLine.CalcVATAmountLines(1,PurchHeader,CombinedPurchLineTemp,TempVATAmountLine);

      PurchLineForReverseChargeVAT.RESET; // Add this line.
      PurchLineForReverseChargeVAT.DELETEALL; // Add this line.

      IF PurchLine.FINDSET THEN
      REPEAT
      JobPurchLine := PurchLine;
      ...

      Existing code 2
      ...

      PurchLine.TESTFIELD(Amount,0);

      RoundAmount(PurchLine."Qty. to Invoice");

      IF "Document Type" IN ["Document Type"::"Return Order","Document Type"::"Credit Memo"] THEN BEGIN
      ReverseAmount(PurchLine);
      ReverseAmount(PurchLineACY);
      END;

      RemQtyToBeInvoiced := PurchLine."Qty. to Invoice";
      ...
      Replacement code 2
      ...
      PurchLine.TESTFIELD(Amount,0);

      PurchLineForReverseChargeVAT := PurchLine; // Add this line.
      RoundAmount(PurchLine."Qty. to Invoice");

      IF "Document Type" IN ["Document Type"::"Return Order","Document Type"::"Credit Memo"] THEN BEGIN
      ReverseAmount(PurchLine);
      ReverseAmount(PurchLineACY);
      ReverseAmount(PurchLineForReverseChargeVAT); // Add this line.
      END;

      PurchLineForReverseChargeVAT.INSERT; // Add this line.
      RemQtyToBeInvoiced := PurchLine."Qty. to Invoice";
      ...

      Existing code 3
      ....

      CASE InvPostingBuffer[1]."VAT Calculation Type" OF
      InvPostingBuffer[1]."VAT Calculation Type"::"Reverse Charge VAT":
      BEGIN // Delete this line.
      VATPostingSetup.GET( // Delete this line.
      InvPostingBuffer[1]."VAT Bus. Posting Group",InvPostingBuffer[1]."VAT Prod. Posting Group"); // Delete this line.
      InvPostingBuffer[1]."VAT Amount" := // Delete this line.
      ROUND(// Delete this line.
      InvPostingBuffer[1].Amount * VATPostingSetup."VAT %" / 100);// Delete this line.
      InvPostingBuffer[1]."VAT Amount (ACY)" := // Delete this line.
      ROUND( // Delete this line.
      (InvPostingBuffer[1]."Amount (ACY)" * VATPostingSetup."VAT %" / 100),Currency."Amount Rounding Precision");
      END; // Delete this line.
      InvPostingBuffer[1]."VAT Calculation Type"::"Sales Tax":
      ...

      Replacement code 3
      ....

      CASE InvPostingBuffer[1]."VAT Calculation Type" OF
      InvPostingBuffer[1]."VAT Calculation Type"::"Reverse Charge VAT":
      CalcAmtVATForReversechargeVAT; // Add this line.
      InvPostingBuffer[1]."VAT Calculation Type"::"Sales Tax":
      ...
      Existing code 4
      ...

      GenJnlLine."Base Before Pmt. Disc." := InvPostingBuffer[1]."Base Before Pmt. Disc.";

      RunGenJnlPostLine(GenJnlLine,InvPostingBuffer[1]."Dimension Entry No.");
      UNTIL InvPostingBuffer[1].NEXT(-1) = 0;
      ...


      Replacement code 4
      ...

      GenJnlLine."Base Before Pmt. Disc." := InvPostingBuffer[1]."Base Before Pmt. Disc.";
      GenJnlPostLine.SetVATAmtWithoutNonDeduct(VATAmtWithoutNonDeduct); // Add this line.

      RunGenJnlPostLine(GenJnlLine,InvPostingBuffer[1]."Dimension Entry No.");
      UNTIL InvPostingBuffer[1].NEXT(-1) = 0;
      ...
    3. On the View menu, click C/AL Globals, and then add a function "CalcAmtVATForReversechargeVAT" on the Function tab. After that, click Local and then add the following parameter on the Variables tab:
      • Name: NonDeductVATForReversChargeVAT
      • DataType: Decimal
      • Var: Do not select the check box.
      • Name: NonDeductVATACYForRevsChargVAT
      • DataType: Decimal
      • Var: Do not select the check box.
      • Name: NonDeductVATFCYForRevsChargVAT
      • DataType: Decimal
      Then, add the code in the created CalcAmtVATForReversechargeVAT function as follows:
      VATPostingSetup.GET(
      InvPostingBuffer[1]."VAT Bus. Posting Group",InvPostingBuffer[1]."VAT Prod. Posting Group");
      PurchLineForReverseChargeVAT.RESET;
      PurchLineForReverseChargeVAT.SETRANGE("Line No.",InvPostingBuffer[1]."Line No.");
      PurchLineForReverseChargeVAT.FINDFIRST;
      NonDeductVATForReversChargeVAT :=
      ROUND(
      InvPostingBuffer[1].Amount *
      VATPostingSetup."VAT %" / 100 *
      PurchLineForReverseChargeVAT."Non Deductible VAT %" / 100);
      NonDeductVATACYForRevsChargVAT :=
      ROUND(
      InvPostingBuffer[1]."Amount (ACY)" *
      VATPostingSetup."VAT %" / 100 *
      PurchLineForReverseChargeVAT."Non Deductible VAT %" / 100,
      Currency."Amount Rounding Precision");
      NonDeductVATFCYForRevsChargVAT :=
      ROUND(
      PurchLineForReverseChargeVAT.Amount *
      VATPostingSetup."VAT %" / 100 *
      PurchLineForReverseChargeVAT."Non Deductible VAT %" / 100,
      Currency."Amount Rounding Precision");
      VATAmtWithoutNonDeduct :=
      ROUND(
      InvPostingBuffer[1].Amount *
      VATPostingSetup."VAT %" / 100);
      InvPostingBuffer[1]."VAT Amount" :=
      VATAmtWithoutNonDeduct - NonDeductVATForReversChargeVAT;
      InvPostingBuffer[1]."VAT Amount (ACY)" :=
      ROUND(
      InvPostingBuffer[1]."Amount (ACY)" *
      VATPostingSetup."VAT %" / 100,
      Currency."Amount Rounding Precision") -
      NonDeductVATACYForRevsChargVAT;
      InvPostingBuffer[1].Amount := InvPostingBuffer[1].Amount + NonDeductVATForReversChargeVAT;
      InvPostingBuffer[1]."Amount (ACY)" := InvPostingBuffer[1]."Amount (ACY)" + NonDeductVATACYForRevsChargVAT;
      InvPostingBuffer[1]."VAT Base Amount" := InvPostingBuffer[1]."VAT Base Amount" + NonDeductVATForReversChargeVAT;
      TotalNonDeductVATForRChargeVAT := TotalNonDeductVATForRChargeVAT + NonDeductVATForReversChargeVAT;
      TotalNonDeductVATFCYForRCVAT := TotalNonDeductVATFCYForRCVAT + NonDeductVATFCYForRevsChargVAT;

Prerequisites

You must have Microsoft Dynamics NAV 2009 SP1 installed to apply this hotfix.

Removal information

You cannot remove this hotfix.

Status


Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
Note This is a "FAST PUBLISH" article created directly from within the Microsoft support organization. The information contained herein is provided as-is in response to emerging issues. As a result of the speed in making it available, the materials may include typographical errors and may be revised at any time without notice. See Terms of Use for other considerations.