Calculate and Post VAT Settlement

What is this feature for?

The Calculate and Post VAT Settlement feature enables a complete VAT settlement process in Microsoft Dynamics 365 Business Central - from calculations, through verification, to posting.

The module handles multiple types of VAT settlements, supports foreign currencies, and enables generation of test and final reports.

What benefits do you gain?

✅ Automatic VAT calculation and posting ✅ Support for multiple currencies and VAT types ✅ Ability to test before posting ✅ Detailed reporting and entry history

How to enable the feature?

  1. Make sure you have configured:

    • VAT Posting Setup
    • G/L Accounts and Settlement Account
    • Document numbering
    • Additional Reporting Currency (if used)

  2. Open the Calc & Post VAT Settlement report

  3. Fill in the request page:

    • Starting Date / Ending Date
    • Posting Date
    • Document No.
    • Settlement Account
    • Optional: Show VAT Entries, Post, Show Amounts in Add. Reporting Currency

  4. Run the report in test or posting mode

How does it work in practice?

Step 1: Settlement Preparation

  • Select VAT period (dates)
  • Enter document number and settlement account
  • You can enable options to show VAT entries and additional currency amounts

Step 2: Pre-posting Check

  • Run the report in test mode
  • The system calculates VAT amounts
  • Check the correctness of data and calculations

Step 3: Posting

  • When the data is correct – run the Post mode
  • The system creates G/L entries and closes the settled VAT entries
  • A settlement report is generated

Step 4: Post-settlement Verification

  • Check the posted entries and accounts
  • Verify the closure of the VAT period
  • Archive the report