VENDOR INVOICE ON D365 FO

The Vendor Invoice Journal in D365 FO is an essential document that necessitates a thorough understanding of the invoicing process.

To create a vendor invoice journal, follow these steps:

1. Navigate to Account Payable > Invoice > Invoice Journal.
2. Select the appropriate journal name and click on Line.
3. In the line details, enter the following information:
   • Vendor Account
   • Invoice
   • Amount
   • Offset account (which refers to the expense General Ledger)
   • Sales tax group
   • Item sales tax group.
4. Click the Sales Tax button on the line to preview and validate the tax calculation.
5. Finally, click Post Journal to complete the entry.

Expected results for the entries include:

• Debit to Expense GL
• Debit to VAT
• Credit to Vendor

It is important to ensure that all tax details are accurately captured during the process of creating a vendor invoice. This step is crucial for maintaining accurate financial records and compliance.