Applies to Product – Dynamics 365 Business Central
What’s happening?
Tax entries for purchase invoices are missing when the document is using the expense/capitalize option in the tax percentages setup. This results in discrepancies in financial reporting, as only one tax record is created after posting the transaction.
Reason:
This is by design, as historically, neither the current system nor its predecessor versions have included Expense-Capitalize Tax as part of their reporting capabilities. Only recoverable tax from purchase invoices has been reportable.
Resolution:
- It is recommended to capture Expense-Capitalize Tax through an extension from the partner.
- Developers should refer to Codeunit 398 "Sales Tax Calculate," specifically the function CalculateExpenseTax, which demonstrates how to add the tax amount for the expense into the total amount.
- Ensure that the environment is updated to the latest version and test in a sandbox environment without third-party extensions to verify if the issue persists.