We are setting up D365 F&O for the first time and are trying to resolve an issue with VAT when staff are submitting expenses.
Scenario 1 is, a member of staff entertains some staff and some customers at a restaurant. When they receive the bill they post their expenses on D365 and D365 takes the gross amount and uses the category to calculate the VAT amount. This is then subsequently reclaimed.
The issue is that the VAT is only recoverable on part of the bill (as we cannot reclaim VAT on the customer's meals).Scenario 2 a receipt for a night in a hotel is claimed where, the member of staff enters the total bill and the category calculates the VAT about. However, this does not match the VAT amount on the receipt as components of the hotel stay are not charged different rates and these are not itemized ( a bit like the VAT on a supermarket bill is shown as a total but not the VAT for each item).
Does anyone have an approach so that the system can record the recoverable VAT more accurately?
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