When you set up VAT rates in Business Central, you can control exactly which general ledger accounts a given VAT rate applies to. This is done on the GL account tab in the VAT rate predimension setup, where you assign the relevant GL accounts to each rate. You are not limited to a single account. You can add as many GL accounts as you need to a single VAT rate.
Assigning GL accounts to a VAT rate in the predimension setup
In the VAT rate predimension setup, the first tab handles the GL account configuration. This is where you define which account the VAT rate should apply to. You open the applicable GL account tab and specify the accounts that the rate covers.
You have two ways to enter the accounts. You can look up the account from the list, or you can type the GL account number directly. Both methods get you to the same result, so you can use whichever is faster for you.
Applying a VAT rate to multiple GL accounts
A single VAT rate is not tied to just one account. You can apply the same VAT rate to as many GL accounts as you need. This makes it straightforward to cover all the accounts that share the same VAT treatment without having to repeat the setup for each one.
Q&A
Where do you configure which GL account a VAT rate applies to?
You configure it on the first tab of the VAT rate predimension setup, the GL account tab, where you assign the relevant general ledger accounts to the VAT rate.
Can you assign more than one GL account to a single VAT rate?
Yes. You can apply a VAT rate to as many GL accounts as you need. There is no limit to a single account.
How do you enter a GL account in the VAT rate setup?
You can either look up the account from the list or type the GL account number directly.