No VAT entries are created when you unapply customer ledger entries or vendor ledger entries under certain circumstances in Microsoft Dynamics NAV 2009

Symptoms

Assume that you use the Adjust VAT for Payment Discount functionality and that the payment tolerance is used in Microsoft Dynamics NAV 2009. Additionally, the payment is less than the invoice amount. In this situation, value-added tax (VAT) entries are generated for applying entries. When you then unapply the customer ledger entries or the vendor ledger entries, no VAT entries are created. You expect the VAT entries to be created in the opposite way to eliminate the VAT entries from the previous applying transaction. This problem occurs in the following products:

Microsoft Dynamics NAV 2009 R2
Microsoft Dynamics NAV 2009 Service Pack 1
Microsoft Dynamics NAV 2009

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 2009 service pack or the next Microsoft Dynamics NAV 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 resolve this problem, follow these steps:

Change the code in the UnapplyCustLedgEntry function in the Gen. Jnl.-Post Line codeunit (12) as follows:
Existing code

...
          PostUnrealVATByUnapply(
            TaxJurisdiction."Unreal. Tax Acc. (Sales)",
            TaxJurisdiction."Tax Account (Sales)",
            VATEntry,TempVatEntry);
        END;
        VATEntry2 := TempVatEntry;
        VATEntry2."Entry No." := NextVATEntryNo;
        NextVATEntryNo := NextVATEntryNo + 1;
        VATEntry2.INSERT;
        TempVatEntry.DELETE;
      END;
      IF (VATPostingSetup."Adjust for Payment Discount") AND
         (VATPostingSetup."VAT Calculation Type" =
           VATPostingSetup."VAT Calculation Type" :: "Reverse Charge VAT") AND
         (VATEntry."Unrealized VAT Entry No." = 0) AND
         (VATEntry."Document Type" <> VATEntry."Document Type" :: "Credit Memo") AND
...

Replacement code

...
          PostUnrealVATByUnapply(
            TaxJurisdiction."Unreal. Tax Acc. (Sales)",
            TaxJurisdiction."Tax Account (Sales)",
            VATEntry,TempVatEntry);
        END;
      END;
      VATEntry2 := TempVatEntry;
      VATEntry2."Entry No." := NextVATEntryNo;
      NextVATEntryNo := NextVATEntryNo + 1;
      VATEntry2.INSERT;
      TempVatEntry.DELETE;

      IF (VATPostingSetup."Adjust for Payment Discount") AND
         (VATPostingSetup."VAT Calculation Type" =
           VATPostingSetup."VAT Calculation Type" :: "Reverse Charge VAT") AND
         (VATEntry."Unrealized VAT Entry No." = 0) AND
         (VATEntry."Document Type" <> VATEntry."Document Type" :: "Credit Memo") AND
...

Change the code in the UnapplyVendLedgEntry function in the Gen. Jnl.-Post Line codeunit (12) as follows:
Existing code

...
            PostUnrealVATByUnapply(
              TaxJurisdiction."Unreal. Tax Acc. (Purchases)",
              TaxJurisdiction."Tax Account (Purchases)",
              VATEntry,TempVatEntry);
          END;
        VatEntry2 := TempVatEntry;
        VatEntry2."Entry No." := NextVATEntryNo;
        NextVATEntryNo := NextVATEntryNo + 1;
        VatEntry2.INSERT;
        TempVatEntry.DELETE;
      END;
      IF (VATPostingSetup."Adjust for Payment Discount") AND
         (VATPostingSetup."VAT Calculation Type" =
           VATPostingSetup."VAT Calculation Type" :: "Reverse Charge VAT") AND
         (VATEntry."Unrealized VAT Entry No." = 0) AND
         (VATEntry."Document Type" <> VATEntry."Document Type" :: "Credit Memo") AND
...

Replacement code

...
            PostUnrealVATByUnapply(
              TaxJurisdiction."Unreal. Tax Acc. (Purchases)",
              TaxJurisdiction."Tax Account (Purchases)",
              VATEntry,TempVatEntry);
          END;
      END;
      VatEntry2 := TempVatEntry;
      VatEntry2."Entry No." := NextVATEntryNo;
      NextVATEntryNo := NextVATEntryNo + 1;
      VatEntry2.INSERT;
      TempVatEntry.DELETE;

      IF (VATPostingSetup."Adjust for Payment Discount") AND
         (VATPostingSetup."VAT Calculation Type" =
           VATPostingSetup."VAT Calculation Type" :: "Reverse Charge VAT") AND
         (VATEntry."Unrealized VAT Entry No." = 0) AND
         (VATEntry."Document Type" <> VATEntry."Document Type" :: "Credit Memo") AND
...

Notes

Make sure that the Post Pmt.Disc Tol. to Pmt.Disc field in the General Ledger Setup table (98) is set to No. If the field is set to Yes, when you apply an open document by using a payment together with the payment tolerance, the general ledger entries are created for the VAT. However, the VAT entries are missing.
In the future versions of Microsoft Dynamics NAV, the Post Pmt.Disc Tol. to Pmt.Disc field will be removed from the General Ledger Setup table (98).

Prerequisites

You must have one of the following products installed to apply this hotfix:

Microsoft Dynamics NAV 2009 R2
Microsoft Dynamics NAV 2009 Service Pack 1
Microsoft Dynamics NAV 2009

Removal information

You cannot remove this hotfix.

More Information

For more information, click the following article number to view the article in the Microsoft Knowledge Base:

979138 Error message when you unapply customer ledger entries in foreign currency in Microsoft Dynamics NAV 2009 SP1: "There is no VAT Entry within the filter"

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.