Applies to Product - Dynamics 365 Business Central
What’s happening?
The posting of a down payment in Business Central (SaaS) is reported to be non-compliant with French accounting rules, specifically regarding "Down Payments" or Prepayments.
Reason:
This arises from the handling of prepayment invoices and the associated VAT entries, which do not align with the updated French accounting regulations that require specific accounting treatments for prepayments.
Resolution:
- Confirm whether this is related to the Business Central base application or an external extension. If it is an external extension, contact the publisher for support.
- Ensure that the G/L entries for prepayment invoices are correctly configured. The following entries should be considered:
- The customer account should reflect VAT included.
- The VAT entry should be recorded as "Unrealized VAT" until the payment is applied, at which point it should be transformed into realized VAT.
- Review the accounting schemes and ensure they comply with the latest French regulations regarding prepayments and VAT.
- If necessary, create an internal work item to address the compliance issue and monitor its progress with the development team.
- Maintain communication with partners and stakeholders to gather feedback and updates on the resolution status.