Author: Ian Grieve

This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2024 Wave 2 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2024 Wave 2.

The 14th of the new functionality in the Country and regional section is enable use of other currencies – Czechia.

Recent Czech legislation allows Czech companies to determine a functional currency and record their accounting in a currency other than Czech. It’s now possible to use a foreign currency for corporate accounting and to use the Additional Currency Reporting functionality for other records and reports that must be in Czech currency.

Enabled for: Users, automatically
Public Preview: –
General Availability: Oct 2024

Feature Details

The new amendment to Act No. 563/1991 Coll., on Accounting, effective from January 1, 2024, introduces the concept of functional currency as the currency of accounting. Functional currency means the currency of the primary economic environment in which the entity operates and may be other than the Czech currency. The functional currency of an entity can be determined on the basis of the criteria for determining the functional currency under IFRS as governed by European Union law.

If the company decides to implement accounting in a foreign currency, then for other records and reports that must be in Czech currency, it uses the Additional Reporting Currencies functionality for reporting. However, this only deals with the creation of material items and VAT items, but not with subsequent reporting. All VAT reporting must be done in Czech currency (CZK), so the reporting functionalities have been adapted as follows:

• Preview of the VAT statement
• VAT control report
• VAT control report statistics
• VIES Declaration
• Export of the VAT statement
• Export of VAT control report
• Export of the VIES Declaration
• Printing the VAT statement (Report 11769)
• Printing of the Recording Obligation (Basis for VAT) and List of Tax Documents (Report 11756)
• Test report of the VAT Control Report (Report 31103)
• Test report of the VIES Declaration (Report 31064)

New VAT rate to additional reporting currency (Document Currency/Additional Reporting Currency) fields have been added to the purchase and sales documents to allow the currency rate to be adjusted if necessary. Similar functionality has been added to purchase and sales advances. The printing of document reports has also been modified.

This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2024 Wave 2 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2024 Wave 2.

The 13th of the new functionality in the Country and regional section is sales advance from the project – Czechia.

Creating Sales advances from Project can save users time and effort by reducing the need to manually enter data. Sales advances can be created for the entire project or only for a project task.

Enabled for: Users, automatically
Public Preview: –
General Availability: Oct 2024

Feature Details

The process improves productivity and efficiency by allowing you to quickly and easily create sales advances for the entire project or only for a project task.

The project number is entered in the sales advance invoice and the project task number is also entered in the advance line. This link between the project and the advance allows you to determine the amounts of the advances with a link to the project.

However, there won’t be a linking (applying) of advances as with sales orders to ensure that the advance is automatically deducted when the invoice is created from the project. A factbox is added to the project card to show the number of advances created from the project and the amounts of advances total, to be paid and to be used.

This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2024 Wave 2 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2024 Wave 2.

The 12th of the new functionality in the Country and regional section is allocations functionality in Cash Desks – Czechia.

To make data entry efficient and reduce errors for recurring types of posting, you can use allocations to predefine how to distribute revenue for transactions or cost amounts across G/L accounts and dimensions. You can use allocation keys on cash desk document lines.

Enabled for: Users, automatically
Public Preview: –
General Availability: Oct 2024

Feature Details

You can use allocation keys to automate the distribution of revenue or cost transactions in journals, sales documents, purchase documents and newly created cash desk documents. Allocation keys can trigger automatic G/L entry postings and allocations across different accounts and dimensions.

For example, allocation keys can automate postings related to payroll overhead. When posting total salary expenses at the end of the month, you can use automatic account codes to assign a percentage of the total salary to automatically post as overhead expenses. Or, you can use headcount per department to distribute the cost to the department-related dimension.

You can define your allocation keys based on:

• Fixed amounts
• Variable amounts (balance, net change)
• Statistical accounts (non-financial quantities you track through the Statistical Accounts feature)

This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2024 Wave 2 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2024 Wave 2.

The 11th of the new functionality in the Country and regional section is improve VAT reporting and adjustments – Czechia.

The addition of non-deductible VAT functionality for CZ legislation, specifically to support VAT reporting and accounting period-end posting coefficient.

Enabled for: Users, automatically
Public Preview: –
General Availability: Oct 2024

Feature Details

The standard functionality non-deductible VAT allows you to reduce input VAT entries, add the amount of unclaimed VAT to the account or item entry. However, it doesn’t cover all mandatory requirements of the Czech legislation, especially regarding VAT reporting and the posting coefficient at the end of the accounting period.

The value of the VAT reduction coefficient can be set for the whole company in one place. The value will be applied to all marked combinations of VAT posting groups. In addition to the input tax reduction through the shortening coefficient, it’s also possible to set a 100 percent tax reduction in the VAT account group combination, that is, the case when there is no entitlement to apply VAT on the input side, but the output side (in the case of transactions under the reverse charge regime) has to report VAT in full.

The VAT reduction also applies to the VAT Report and the VAT Control Reports, which include the entire unreduced amounts. After the end of the calendar year, it’s possible, on the basis of the calculated settlement coefficient, to recalculate all VAT entries from the period and post the difference between the originally applied and the settlement coefficient.

This functionality extends the non-deductible VAT solution for the Czech Republic also with support for advance purchase invoices.

This article is part of the Using Extended Texts In Microsoft Dynamics 365 Business Central series, but articles within it will also be part of the larger ongoing In Microsoft Dynamics 365 Business Central, how do I… series which I am posting as I familiarise myself with Microsoft Dynamics 365 Business Central.

Extended Texts are available for use in several modules of Business Central (including inventory, purchasing and sales) so thought I’d create a small sub-series to group them together as well as including them in the larger In Microsoft Dynamics 365 Business Central (???), how do I…[/i] series I have in progress.

This is the series index for the Using Extended Texts In Microsoft Dynamics 365 Business Central related posts I will be writing. The series index, below, will automatically update as each article in the series goes live.

This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2024 Wave 2 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2024 Wave 2.

The 9th of the new functionality in the Country and regional section is include employee transactions in exchange rate adjustment report – Czechia.

You can use general journals for employee accounts to register employee expenses and reimbursement transactions in foreign currencies, and then easily track the amounts and compare them to receipts. The Czech version of the exchange rate adjustment report (31004) now allows you to include employee transactions.

Enabled for: Users, automatically
Public Preview: –
General Availability: Oct 2024

Feature Details

When you use general journals to post transactions for employee accounts, such as when you reimburse expenses, you can use the Currency Code field to specify the currency for the transactions. Specifying a currency lets you use the same features as when you register transactions in the customer and vendor ledgers. For example, employees can register an expense in euros but get paid in dollars.

To ensure that the exchange rate for the amounts is up to date, you can adjust employee balances when you run the Czech version of a currency exchange rate batch job (Adjust Exchange Rates CZL (31004)). If you want to use the exchange rate table, but settle employee balances in your local currency, you can exclude employee accounts when you adjust exchange rates.

This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2024 Wave 2 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2024 Wave 2.

The 8th of the new functionality in the Country and regional section is vAT Return feature now available – Czechia.

The standard VAT Return feature can now be used to submit a VAT return in compliance with Czech law.

Enabled for: Users, automatically
Public Preview: –
General Availability: Nov 2024

Feature Details

Previously, the VAT Statement feature was used for VAT returns in the Czech version of Business Central. We’ve now added the option to use the standard VAT Return feature in Business Central. The VAT return is generated and submitted to the “Moje daně” portal. The lines on the VAT return are created based on the settings in the VAT statement. The system verifies if a regular VAT return has already been created for the period. However, since there can be multiple corrective and additional returns for a given period, this is not checked. This feature allows the VAT return to be saved, providing the user with immediate access to it in the system for future reference.

This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2024 Wave 2 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2024 Wave 2.

The 7th of the new functionality in the Country and regional section is advance letters with reverse charge – Czechia.

By eliminating the need to automatically post advance tax documents for reverse charge payments, businesses can streamline their processes, reduce administrative overhead, and enhance operational efficiency.

Enabled for: Users, automatically
Public Preview: –
General Availability: Oct 2024

Feature Details

The new functionality allows you to post advances in accordance with the Czech VAT Act and not create tax documents for payments of advances or parts thereof under the reverse charge regime. This function can be set up in the Advance Letter Templates.

For advances with both normal VAT and reverse charge transactions, tax documents for payments will be posted only for the parts corresponding to normal transactions. Thus, only the parts of the document with normal transactions will be included in the VAT statement and the VAT Control report. The parts of the advances corresponding to the reverse charge will be posted to the final invoices in the standard way, that is, they will reduce the invoice balance but not the VAT value of the transaction.

This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2024 Wave 2 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2024 Wave 2.

The 6th of the new functionality in the Country and regional section is calculate and post VAT settlement by Activity Code – Italy.

Users can ensure full compliance with Italian tax regulations by calculating VAT settlements based on activity codes.

Enabled for: Users, automatically
Public Preview: –
General Availability: Nov 2024

Feature Details

This feature allows users to configure various Activity Codes, such as trade or service, for use in VAT Settlements. When enabled, Business Central will support posting multiple VAT settlements within the same period, each associated with a different Activity Code. These activity codes will also be recorded in the Periodic Settlement VAT Entry. Once a VAT settlement for a specific period is posted, the system will automatically document the period in the corresponding Activity Codes, ensuring accurate and compliant reporting.

This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2024 Wave 2 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2024 Wave 2.

The 5th of the new functionality in the Country and regional section is posting of alternative customer-vendor posting groups – Czechia.

Thanks to this modification, turnovers on customer or vendor balance accounts will not be increased and values will not be distorted during analyses.

Enabled for: Users, automatically
Public Preview: –
General Availability: Oct 2024

Feature Details

If different customer or vendor posting groups are used on an invoice, credit note or payment document, then the G/L entries are automatically recharged between the accounts from each posting group when applying customer/vendor entries. The previous posting method for applying items increased the turnover on the debit and credit sides by the same amount.

This modification accounts for the balancing as a correction—that is, only one side of the debit or credit account is used for posting. This avoids increasing the turnover on the balance accounts and distorting the values in the analyses.