This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2023 Wave 2 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2023 Wave 2.
The fourth of the new functionality in the Legislation section is Use drop shipments for triangular Intrastat trade.
Businesses that ship goods directly from a vendor in another EU country to a customer in a third EU country can exclude those transactions from their Intrastat reports, which makes the reports more accurate.
Enabled for: Users, automatically
Public Preview: Sep 2023
General Availability: Oct 2023
Feature Details
Triangular trade involves trade between companies located in three countries or regions where goods bypass the reporting company’s country. In Business Central, you can use drop shipments to handle triangular trade. To use drop shipments, you must turn on the Include Drop Shipment toggle on the Intrastat Report Setup page.
This feature allows for scenarios where a company orders goods from one EU country and drop ships the goods directly to another EU country, without importing the goods into its own country. In such cases, the Intrastat Report will exclude these transactions because the goods were directly delivered between two other EU countries. The calculation is based on the following information from the item ledger entries:
- Entries are marked as Drop Shipment.
- The Country/Region Code is different than the Country/Region Code on the Company Information page.
My Opinion
This enhancement sounds like it will improve the accuracy of the Intrastat report for goods drop shipped from vendor to customer. Since the UK left the European Union, the amount of work I do in the area of Intrastat reporting has dropped a lot, but we do still do some work with clients based in Ireland, an EU member state.
I actually have a project starting with one of those clients soon, who does have a requirement for Intrastat, so it will be interesting to talk to them about if this is required or not.