Polish Functionality – Starter Pack for Dynamics 365 Business Central

Polish Functionality – Starter Pack

 

Polish Functionality – Starter Pack is a comprehensive application that extends the standard functionality of Microsoft Dynamics 365 Business Central with additional solutions that adjust the system to legal and accounting requirements resulting from Polish regulations. As a Microsoft certified product, the application is available on Microsoft AppSource. It has been designed by Microsoft Partner IT.integro for Polish users of ERP system Dynamics 365 Business Central and companies operating in Poland.

Polish Funtionality Starter Pack logo
Polish Funtionality Starter Pack

The application provides a number of functional extensions enabling, among others:

 

    • selling goods and services in Poland and issuing invoices as required,
    • calculation of VAT payment amounts and preparation of VAT returns,
    • reporting the flow of goods and services for Intrastat purposes,
    • preparation of SAFT in accordance with the structures required by the Polish Ministry of Finance,
    • verification of contractors in the VAT taxpayers register,
    • compliance with the Polish classification of goods and services (PKWiU),
    • application of the mandatory payment mechanism.

Polish Functionality – Starter Pack for Microsoft Dynamics 365 Business Central® is an application available in both license models: cloud (online, SaaS) and on-premises (perpetual license and subscription). Since the release wave 2 of Business Central 2019, the Polish Functionality – Starter Pack application is offered as a single solution for both the online and on-premises versions of ERP system Microsoft Dynamics 365 Business Central.

Polish Functionality – Starter Pack adds the following functional extensions to the standard Dynamics 365 Business Central application.

Maintaining the general ledger

Posting Description

With this feature of Polish Functionality – Starter Pack, it is easier to enter transaction descriptions for transactions posted and registered in the G/L Entry table. The posting description feature is available for the following document types:

 

    • sales document,
    • purchase document,
    • service document.

Exchange Rate Adjustment Registers

 

The history of exchange rate adjustments is stored in exchange rate adjustment registers. Polish Functionality – Starter Pack extends the standard layout of the registers page. With the posting report feature added, the application ensures that the user gets a complete history and overview of the exchange rate adjustments.

Adjust Exchange Rates

 

Adjustment of exchange rates (balance sheet valuation) means the recalculation of open customer and vendor balances as well as cash amounts collected in a cash desk and bank accounts calculated based on one selected exchange rate that is valid on the day when the balance sheet valuation is carried out. Valuation should be carried out at least once a year. The Polish Functionality – Starter Pack application for Dynamics 365 Business Central includes the following enhancements:

 

    • the possibility of running the Adjust Exchange Rates batch job separately for receivables, payables and bank accounts;
    • the possibility of posting detailed entries or entries aggregated by currency by running the Adjust Exchange Rates batch job;
    • the possibility of running the Adjust Exchange Rates batch job in the test mode, only for simulation purposes (without posting the recalculated values).

Information about the name and version of the accounting software

 

In accordance with the provisions of the Accounting Act, it is necessary to print information about the name and version of the accounting program on all official accounting reports:

“(…) Accounting books with the accounting method indicated, should be (…) permanently marked with the (full or shortened) name of the business entity to which they relate to (each bound book, each separate account sheet, also if in the form of a computer printout or a list displayed on a computer screen), the name of the relevant accounting book type and the name of the processing software (…)”.
Thus, the standard reports within Polish Functionality – Starter Pack for Dynamics 365 Business Central contain the accounting software name and version information.

Configuration of the Get NBP Exchange Rates service

 

The National Bank of Poland publishes a Web API thanks to which users can download data on previous and current exchange rates. in Dynamics 365 Business Central, you can easily define settings that allow you to use the API to download and update exchange rates. The functionality also allows to define transformation rules that enable the downloading of appropriate NBP rates.

Polish Funtionality Starter Pack

Maintaining VAT processes

 

Polish law enables the settlement of VAT in a period other than the period when the document is posted. Therefore, to pay the tax on goods and services (VAT) to the tax office, it is necessary to determine when a given transaction resulted in the obligation to pay the tax, i.e. the VAT settlement date. The VAT settlement date determines the date when the output (sales) VAT should be paid and VAT deduction in the following months.
As part of the Polish Functionality – Starter Pack application, a number of solutions have been prepared to support VAT-related processes in compliance with the regulations in force in Poland.

VAT Settlement Date

 

Polish law allows VAT settlement in periods other than the ones in which the document was posted. The VAT Settlement Date feature, as a part of the Polish Functionality – Starter Pack application, can be used to allocate VAT transactions to a specific accounting period, regardless of the document posting date.

Postponed VAT (marking approved sales credit memos)

The postponed VAT feature is used every time the VAT amount is to be suspended as it is not possible to settle it at a given time. It is especially relevant for handling sales credit memos. Under Polish law, it is possible to deduct a VAT amount for a sales credit memo only after the customer confirms the receipt of this document. Therefore, it is necessary to postpone the VAT amount for the period between the issue of the sales credit memo and the customer’s confirmation of its receipt.

Sales/Purchase VAT Register

The Sales/Purchase VAT Register report is a basic report used for calculating amounts of sales and purchase VAT amounts in selected periods. The report displays a VAT amount as well as detailed customer or vendor information for each document.

 

The VAT base amount and VAT amount are displayed separately for specific VAT rates. The program also displays the total VAT amount and the total of VAT amounts for each combination of the VAT Business Posting Group and VAT Product Posting Group field values. in the Sales/Purchase VAT Register report, you can view VAT entries based on VAT posting groups or VAT IDs, depending on the option selected while defining the setup for report printing.

VAT Application Worksheet

 

The VAT application worksheet is a tool in Polish Functionality – Starter Pack that enables VAT settlement prior to its settlement with the tax office. With this functionality, the Microsoft Dynamics 365 Business Central user gets complete control over VAT-related activities such as VAT postponing and application, skipping in the VAT register, as well as changing VAT settlement dates and exchange rates to recalculate reverse charge VAT amounts.

Polish Funtionality Starter Pack

VAT Attributes

When registering documents, it is necessary to assign appropriate VAT attributes to specific types of goods and services. in Polish Functionality – Starter Pack, the VAT Attributes action has been added to each page used to enter and post purchase and sales documents. The dictionary of VAT attributes is complete, and it complies with the dictionary specified by the Ministry of Finance. The default attributes feature makes it easier to configure the system and support the sales and purchasing process. The application enables the editing of VAT attributes on posted elements.

Detailed VAT Entries

The Detailed VAT Entries functionality has been added to the standard Microsoft Dynamics 365 Business Central version to ensure the easier control and changes of the VAT amount to be settled in a selected period.

Generally, this concept resembles other detailed system entries such as detailed customer and vendor ledger entries. This means that on the Detailed VAT Entries page, the system creates separate entries to store detailed information on any changes in VAT entries amounts. The VAT entry amounts are the sum of all amounts registered in detailed VAT entries related to a specific VAT entry.

Posting a full VAT amount

 

Under Polish legal requirements, the VAT register should show a net amount for all VAT transactions. To meet this requirement, the Polish Functionality– Starter Pack application, enables the manual entry of a VAT base amount for transactions for which only a VAT amount is to be posted. This feature is particularly useful for recording purchases from non-EU countries. For such transactions, it is necessary to post two documents:

 

    • Purchase invoice – to include a purchase net value and a payable amount based on a vendor invoice;
    • PZC Document (Certified Customs Declaration) – to ensure that VAT and other custom duties which add up to the non-UE shipment value are registered.

 

The net value which is a basis for VAT calculation is posted based on a purchase invoice, and therefore it cannot be posted again based on a PZC document when a VAT amount is posted. Therefore, when a PZC document is posted, the VAT base used for calculation is displayed only for information purposes. This ensures the correctness of purchase transaction in the VAT register.

Skipping transactions in the VAT register

 

Transactions posted from purchase invoices also include costs that are exempt from VAT, and therefore they should not be included in VAT settlement for a specific period. Therefore, the Skip in VAT Register field has been added to purchase lines within Polish Functionality – Starter Pack. The field can be selected optionally to exclude the selected VAT entries from VAT settlement.

Reverse charge VAT supported

 

Under Polish legal regulations, intra-community acquisition of goods and services and import of services are subject to the VAT payment obligation, which means that it is required to record all transactions with a VAT amount calculated in the VAT register. The standard Reverse Charge VAT feature is used to calculate sales and purchase VAT amounts for such transactions. To customize this functionality to Polish legal requirements, Polish Functionality – Starter Pack has been enhanced with the following elements:

    • an extension enabling the creation of a VAT entry for sales transactions thanks to which the intra-Community acquisition transaction and the purchase of services with the VAT amount to be paid are shown both in the sales and purchase VAT register;
    • calculation of the VAT amount in the local currency according to the exchange rate on a date different from the conversion date of the purchase and liabilities values that is used in accounting books.
Polish Funtionality Starter Pack

Reverse charge in purchase transactions

 

The reverse charge is a process of transferring the obligation of settling a VAT payment with the tax office to the customer. The reverse charge VAT is applicable for:

    • intra-community purchase of goods and services,
    • import of services and specific domestic purchase transactions listed in the annexes to the VAT Act.

The reverse charge involves the obligation to include transactions with a calculated VAT amount in the VAT register. The standard reverse charge feature is used to calculate sales and purchase VAT amounts. However, it creates only purchase VAT entries. That is why, a VAT amount calculated for inter-community transactions and service purchases is recorded only in the VAT purchase register.

With its latest enhancements, the reverse charge VAT feature in Polish Functionality – Starter Pack enables the creation of the VAT sales entries. Thanks to the functionality, intercommunity and service purchase transactions including sales VAT are included in the VAT sales register. Polish Functionality – Starter Pack for Microsoft Dynamics 365 also enables the user to calculate a VAT amount in a local currency using the exchange rate on a day other than the conversion date of purchase and payables values.

Reverse charge in sales transactions

 

For sales transactions with reverse charge, other VAT rates are used than the ones used for purchase transactions. The Sales VAT Register contains entries related to VAT due for both – purchase and sales transactions with the reverse charge VAT. Polish Functionality – Starter Pack provides a tool that allows to distinguish between these two transactions.

Checking the status of a business entity as a VAT taxpayer

 

The functionality connects Dynamics 365 Business Central with the „Checking the VAT Status” service including „Check VAT . No.” that the Ministry of Finance provides for validation purposes. Without leaving the system, the user can validate if a business entity has been registered as a VAT payer on the day preceding the date when the validation request was submitted. The validation process is based on a VAT registration number/NIP submitted. With the Check VAT Status function, you can run multiple validations for one business partner. Validation can be performed within the contractor card and within purchase and sales documents before they are posted.

VAT payer register

Pursuant to the applicable regulations, if a payment amount exceeds of PLN 15,000, it should be transferred to the contractor’s account specified in the VAT payer register. Only such payments may be included by the taxpayers as tax deductible costs.

The application allows the user to verify the contractor’s bank account by using the VAT payers register according to the method selected for account verification: by using a flat file or via API. If a bank account is verified based on a flat file, the log of the VAT taxpayer register file is used. The log contains the files downloaded from the resources of the Ministry of Finance. All inquiries regarding the contractor’s bank account are assigned an identifier and recorded in the VAT Taxpayers Register Request Log.

The contractor can be verified from the purchase order level using the Check Contractor function.

Polish Functionality – Starter Pack

Dynamics 365 Business Central

Polish Funtionality Starter Pack for Dynamics 365 Business Central

Receivables and payables management

Printing sales documents (sales Invoices and sales credit memos)

 

All printouts issued within Polish Functionality – Starter Pack are complaint with statutory requirements and include all required items. This applies to documents such as sales invoices, sales credit memos.

Downloading data from government services

 

The verification of contractors’ data can be carried out not only on the basis of the VAT taxpayer register, but also by using the Get Data from Gov. Services functionality which also allows to download additional data and additional account numbers of contractors. Based on the information obtained, the user can update the customer, vendor and contact cards in Dynamics 365 Business Central respectively.

The Polish Functionality – Starter Pack application enables the user to connect directly from the Microsoft Dynamics 365 Business Central system to the National Official Business Register Database (BIR) and search for entities based on a NIP number. It is possible to create and update customer, vendor and contact data based on data retrieved from the National Official Business Register.

Sales invoice and sales credit note

 

The process of sales invoice printing has been customized to incorporate local legal requirements. Printed sales invoices include all required elements.

A sales credit memo is issued if some corrections in the sales invoice must be made. In Polish Functionality – Starter Pack, the following improvements have been added to facilitate the creation of sales credit memos, including:

 

    • correction types that enable the user to control the accuracy of modifications entered;
    • the possibility of issuing one sales credit memo for multiple sales invoices.

Customer/vendor balance reconciliation

At the end of each fiscal year (or, if necessary, other accounting periods) companies prepare reports on their accounts receivable and payable to reconcile them with relevant customer and vendor balances. Vendors and customers are obliged to validate such statements by settling the payables and receivables balances registered in their systems and provide their feedback on the process. The Polish Functionality – Starter Pack application provides Customer Balance Confirmation and Vendor Balance Confirmation reports that show receivables and payables for specific dates.

Fixed assets management

Annual depreciation plan

 

In order to estimate the expected value of fixed assets as well as tangible and intangible assets, many companies perform an annual depreciation simulation. The Polish Functionality – Starter Pack application provides the Annual Depreciation Plan report that specifies expected depreciation costs of fixed assets for a selected year.

Inventory management

Intrastat

 

Due to Poland’s membership in the European Union, Polish business entities trading with other EU member countries are obliged to provide information on their intracommunity trade. Business units are obliged to submit Intrastat declarations and to report intra-community trade and goods turnover to custom authorities in a specified form and manner. The standard Microsoft Dynamics 365 Business Central version provides tools that simplify the creation of Intrastat declarations. With additional modifications in the Polish Functionality – Starter Pack application, it is also possible to export Intrastat declarations in the XML file format.

Inventory Counting Document

 

At the end of the fiscal year, users carry out physical inventory counting in order to reconcile physical on-hand inventory with values registered in the Microsoft Dynamics 365 Business Central system. Polish Functionality – Starter Pack provides the Physical Inventory Counting Document report which can be archived by the accounting department as a confirmation of the completed physical inventory counting process. The physical inventory counting document includes posted inventory values and quantities as well as names of company representatives who, with their signatures, confirm that quantities and amounts shown in the document match the actual inventory.

Analysis and reports

G/L account net change and balance

 

The G/L Account Net Change and Balance is one of the statutory reports which each company is obliged to prepare on a monthly basis. If needed, the report can be prepared more frequently, for any periods. Polish Functionality – Starter Pack for Microsoft Dynamics 365 Business Central contains the G/L Account Net Change and Balance report showing all values for all general ledger accounts:

 

    • Beginning Balance,
    • Period Net Change,
    • Net Change,
    • Balance to Date.

G/L Journal

 

The report lists all entries of the general ledger in a chronological order.

G/L register posting document

 

The report shows a posting entry for G/L and other important information. It confirms transaction posting.

Analytical G/L register

 

The report is a confirmation of transaction posting and displays a posting entry. It also includes more details such as entry dimensions, subsidiary ledgers and currencies used.

Analytical G/L document

 

The report shows data similar to the data in the Analytical G/L Register report. However, there are two differences between the two reports.

    • Data to be displayed in the reports is selected by setting up filters at various levels, but the Analytical G/L Document report offers better filtering capabilities.
    • In the Analytical G/L Register report header, the program inserts source information about a posted transaction. This option is not available for the other report.

Bank Account – Detail Trial Balance

 

The report shows the details of transactions posted on selected bank accounts. It can be used at the closing of an accounting or financial period.
Within Polish Functionality – Starter Pack for Microsoft Dynamics 365 Business Central, it is possible to print reports with debit and credit amount columns.

Customer/vendor net change and balance

The Acc. Net Change & Balance reports for vendors and customers supplement the G/L Acc. Net Change & Balance report. They are based on subsidiary ledger entries including receivables and payables. The reports show values such as Open Balance, Period Balance, Period Net Change, Balance to Date for all customers and vendors based on posting groups (receivables or payables accounts).

Customer/vendor ledger entry journal

 

These reports supplement the G/L Journal report. They are based on subsidiary ledger entries including receivables and payables. It is obligatory to prepare the reports on a monthly basis. However, if needed, such reports can be prepared more frequently for any period. The reports list all entries in the customer or vendor ledgers in a chronological order.

Receivables/Payables Ageing Analysis

 

The report provides a tabular view of aged accounts payable/receivable which facilitates data analytics as well as data sorting, filtering and copying at the same time.

Standard audit file (SAF-T/JPK)

SAF-T Setup

 

Polish Functionality – Starter Pack supports the creating of JPK (SAF-T) files (Standard Audit Files) based on the JPK_VAT, JPK_FA, JPK_WB, JPK_KR, JPK_MAG structures for Microsoft Dynamics 365 Business Central. The file structures have been prepared according to the file structures published by the Ministry of Finance.

The user has the option to automatically generate basic JPK functionality settings using the Wizard and define the settings for statutory reporting.

Due to the fact that the structure of JPK files defined by the Ministry of Finance may change, the application includes the functionality of the JPK areas which allows you to select the file version to be generated. Each of the SAF-T areas contains fields for additional elements that will have to be filled in during file export for a selected area.

Executing file export

 

The JPK functionality in Polish Functionality – Starter Pack allows you to prepare JPK_VAT, JPK_KR, JPK_FA, JPK_MAG, JPK_WB, JPK_7M / JPK_7K files in xml format. Files to be sent to the Internal Revenue Office should be generated as required within an external system i.e. (packed, encoded, signed with an electronic signature).

Standard Audit File for Tax with the VAT Records and VAT Return Parts

 

The application allows you to generate JPK VAT files according to a defined structure that meets the current legal requirements. The data structure contains header information, as well as lines corresponding to the specific items in the VAT return (declaration) part and the total amounts in the VAT sales and purchase record part in the JPK_VAT file.

Export File Register

 

The JPK module within Polish Functionality – Starter Pack enables the user to save the JPK_VAT, JPK_KR, JPK_FA, JPK_MAG and JPK_WB files in a database and reexport them. The register is also used to save the file containing setup that is used to generate data.

Split Payment

 

The split payment mechanism within the Polish Functionality – Starter Pack application for Microsoft Dynamics 365 Business Central results from the amendment to the VAT Act, which introduces the mandatory split payment mechanism for goods and services pursuant to Annex 15, starting from November 1, 2019. Polish Functionality – Starter Pack provides a solution that supports the obligatory split payment mechanism (MPP) in the sales and purchase modules.

Split payment setup in sales and purchase documents

 

For the sales and purchase documents, the split payment mechanism uses PKWiU codes and VAT clauses. Basic settings of the split payment mechanism can be defined with the wizard.

Support for the sales and purchase process with mandatory split payment

 

If the sales and purchase processes involve mandatory split payment, the application performs all necessary calculations and selects a relevant field in sales/purchase order documents, sales/purchase invoice and sales/purchase credit memo. The Mandatory Split Payment filed is automatically selected if the conditions for the mandatory application of the split payment mechanism are met.

USER DOCUMENTATION

The documentation intended for users of the Polish Functionality – Starter Pack

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