Additional Currency Exchange Rate for VAT Conversion

When a foreign currency is used to issue a purchase invoice with a purchase VAT amount for domestic vendors and to issue a sales invoice with a sales VAT amount for domestic customers, it is sometimes necessary to use different currency exchange rates for converting the base and VAT amounts and the amounts of costs/revenues and payables/receivables. In Polish Localization for Business Central on-premises, a tool has been added that allows for the provision of two different exchange rates in purchase and sales documents. As a result of this function, the application creates two entries i.e. customer and vendor ledger entries that are broken down into the amount of VAT and the remaining payables/receivables part.

The additional vendor/customer ledger entry with a VAT amount can be created:

• in a local currency
• in a foreign currency.