Functionality of Polish Localization
Maintaining the general ledger
Maintaining the general ledger
- Financial Statements
Polish Localization provides the balance sheet and profit and loss account structure implemented according to the requirements set out in the Accounting Act.
Balance Sheet
Polish Localization allows you to configure selected items solely on the basis of debit or credit lines associated with the customer and vendor ledgers. This feature corresponds to the Polish legal requirement on how receivable and payable amounts should be shown in the balance sheet. In addition, the balance amounts of some general ledger accounts can be included as assets or liabilities, depending on whether they show a debit or credit balance. For example, this approach is used to show public law settlements.
Profit & Loss Statement
In Polish Localization, you can set up selected components in the profit and loss statement so that they are based on the same general ledger accounts and show the values either as revenues or costs, depending on whether the sum of balance amounts is positive or negative. According to legal regulations, the profit and loss statement should also show exchange rate differences. In addition, the balance amounts on some general ledger accounts can be shown in more than one revenue or cost component, for example within the components with the “including” specification.
Account Categories
The application makes it possible to generate account categories that represent the balance sheet and profit and loss account components (in comparative version). The whole set of necessary categories is generated automatically for business entities other than banks, insurance companies and reinsurance companies.
- Number Series Templates
The document number series templates functionality has been designed to define various sets of number series for specific document types. The functionality can be also used to create:
- templates of sales document number series,
- templates of purchase document number series,
- templates of transfer order number series.
- Posting Description
Polish Localization allows you to add descriptions of posted transactions in the General Ledger Entry table. The posting description feature is available for the following document types:
- sales document,
- purchase document,
- service document.
- 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 Localization 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
As specified in the Accounting Act, it is necessary to include the name and version of the business application used on the printed accounting reports. As part of Polish Localization, it is possible to prepare standard reports in Dynamics 365 Business Central with information about the name and version of the accounting program.
- 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. Additionally, the functionality allows you to define transformation rules that enable the downloading of appropriate NBP rates.
- Posting a Correction (red storno)
Polish Localization enables automatic posting of a correction as a red storno (red reversal).
In Polish Localization, the functionality for posting corrections and red storno includes the following:- posting corrections for inter-warehouse transactions as “red storno” (shipments in inter-warehouse movements, reversing the posting of the expected cost, etc.);
- posting the reclassification of a fixed asset as a “red storno”.
Additionally, depending on the setup, the user can be informed when posting on the opposite side than specified in the settings of the respective general ledger account.
Maintaining VAT
Maintaining VAT
- 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 Localization that enables the preliminary settlement of VAT before it is actually settled with the tax office. With this functionality, the Microsoft Dynamics365 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.
- VAT Attributes
When recording documents required, VAT attributes should be assigned to specific types of items and services. In Polish Localization, the VAT Attributes action has been added to each page used for entering and posting 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
With the Detailed VAT Entries feature you can control the change in the value of VAT to be settled in a given 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 Localization 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 tax 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 the 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 entered only manually for information purposes. This ensures the correctness of each 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 sales and purchase lines within Polish Localization. The field can be selected optionally to exclude the selected VAT entries from VAT settlement.
- Sales Orders and Internal Sales Invoices
Under Polish law, some transactions which involve the free-of-charge provision of goods and services should be treated as sales transactions in terms of VAT calculation; therefore sales VAT has to be calculated. If any VAT amount is calculated based on this assumption, it should be registered as a cost. Polish Localization provides the tool that simplifies the process of additional VAT recording for this type of transactions.
- Reverse Charge VAT
Under Polish legal regulations, intra-community acquisition of goods and services and import of services are subject to the VAT 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 (input and output) VAT amounts for such transactions. To customize this functionality to Polish legal requirements, Polish Localization 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.
- 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 intra-community transactions and service purchases is recorded only in the VAT purchase register. The reverse charge VAT feature in Polish Localization enables the creation of the VAT sales entries. With this functionality, intra-community and service purchase transactions including sales VAT are included in the VAT sales register.
Polish Localization for Microsoft Dynamics NAV 365 also enables the user to calculate a VAT amount in the local currency by using the exchange rate as of the day other than the date when purchase and payables values were calculated.
- 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 both – purchase and sales VAT transactions for which the reverse charge VAT was calculated and therefore Polish Localization provides features that help to distinguish between these two transaction types.
- Third-party Transactions
Polish law obliges three business entities operating in a supply chain to properly post and report the VAT amount calculated for third-party transactions including delivery of goods directly from the first to the third entity in the supply chain. It is also necessary to include this type of transaction in the JPK VAT file. The application allows you to generate a JPK file for transactions with the TT_WNT attribute (acquisition from the first entity) and the TT_D (sales to a third entity) attribute.
- Obsługa transakcji trójstronnych
Zgodnie z wymogami polskiego prawa, trzy podmioty biorące udział w łańcuchu dostaw muszą we właściwy sposób zaksięgować i wykazać podatek VAT wynikający z transakcji trójstronnych, w których towar transportowany jest bezpośrednio od pierwszego do trzeciego podmiotu w łańcuchu. Konieczne jest także wykazanie tego typu transakcji w pliku JPK VAT. Aplikacja umożliwia wygenerowanie pliku JPK dla transakcji z atrybutem TT_WNT (nabycie od podmiotu pierwszego) i atrybutem TT_D (sprzedaży do podmiotu trzeciego).
- Non-deductible VAT
In some cases, purchase (input) VAT cannot be deducted in 100%, which means that only part of the VAT amount can be shown in the VAT register, and the remaining part should be added to the purchase amount and posted as costs. The application allows users to settle non-deductible VAT for different types of VAT transactions and calculations (reverse charge and normal VAT).
- VAT Taxpayer Register (white list) - Verification of Bank Accounts
Pursuant to the applicable regulations, if a payment amount exceeds 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 verification of the bank account of the counterparty in the VAT taxpayer list via the API. 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.
- VAT Taxpayer Register (white list) - Verification of the Taxpayer Status
Polish Localization allows you to check VAT taxpayer status in the VAT taxpayer register through API. The National Tax Administration provides access to the VAT Payer Register that contains the business entities which:
• were not registered by the head of the tax office, or
• were removed from the register as VAT taxpayers by the head of the tax office,
• were registered as VAT payers, including business entities which were restored to the register as VAT taxable persons.VAT payers can be validated in the VAT payer register per selected date, not earlier than 5 years preceding the year in which the entity is being validated.
The Ministry of Finance has set the rules for exchanging information between the network service and the interfaces of clients’ systems that retrieve information about statuses of taxpayers registered as VAT payers.
- VAT Reg. No. Origin Country Code
In connection with the requirements for the Standard Audit File and the introduction of the National e-Invoices System, it is required to handle various combinations of tax identification numbers that are used in business transactions and are assigned to contractors both in their home countries and in other countries. Individual business entities may be registered for the purposes of conducting business activity in other countries and have a tax identification number required to conduct tax settlements in a given country. Polish Localization for Dynamics 365 Business Central provides a solution for handling such cases.
- Additional Currency Exchange Rate for VAT Amount Conversion into a Foreign Currency for Domestic Invoices
A foreign currency can sometimes be used to post a purchase invoice with a purchase VAT amount issued by a domestic vendor and to post a sales invoice with a sales VAT amount issued for a domestic customer. In such cases, it may be necessary to use different currency exchange rates for converting the base amount and VAT amount, and for the amounts of costs/revenues and payables/receivables.
Polish Localization for Business Central allows for using two different local exchange rates for purchase and sales documents. This feature streamlines the registration of documents related to transactions in a foreign currency with domestic contractors.
- VAT UE Declaration
With Polish Localization, you can manage and prepare data required for VAT UE declaration, depending on the type of the triangular transaction and the VAT period. VAT-UE declaration entries are created for transaction types that have been defined for a VAT business posting group set for a customer or vendor.
With the EU 3-Party intermediate set role available on sales, purchase and service documents, each transaction in triangular trade can be properly identified and processed by each business entity in the supply chain where goods are moved directly from the first to the third business entity.
The application enables you to generate VAT UE declarations in xml format.
Receivables and payables management
Receivables and payables management
- Sales Invoice and Sales Credit Note
Polish Localization ensures sales invoice printing in Business Central that is compliant with 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 Localization, 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.
- Printing Sales Documents (Sales Invoices and Sales Credit Memos)
All printouts issued within Polish Localization are complaint with statutory requirements and include all required items. This applies to documents:
- unposted sales invoices (pro forma invoices),
- posted sales invoices,
- posted sales credit memos,
- posted service sales invoices,
- posted service sales credit memos.
- Sales Correction Wizard
If it is necessary to adjust the sales transactions, companies usually issue a sales credit memo. Thanks to the sales correction wizard, Polish Localization significantly facilitates this process, allowing, among other things, to set up the custom and default reasons for a sales correction and to create lines that contain information about the sales value before and after the correction.
- Verification of Contractors’ Data. Downloading Data from Government Services
The verification and downloading 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 Government Services functionality which allows you to download additional contractors’ data and account numbers. Based on the information obtained, the user can update the customer, vendor and contact cards in Dynamics 365 Business Central respectively.
The Polish Localization application allows the user to connect directly from the Microsoft Dynamics 365 Business Central system to the REGON Internet 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 Polish National Business Online Register.
- 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.
Polish Localization provides Customer Balance Reconciliation and Vendor Balance Reconciliation reports that show receivables and payables for specific dates.
- Prepayment Invoices
Polish VAT regulations require the company to issue a prepayment invoice for any prepayment the customer has paid for the sales orders delivered. In Microsoft Dynamics 365 Business Central, prepayment invoices are issued and posted by using the prepayment invoice functionality. Polish Localization extends the standard functionality with prepayment invoices capabilities to accommodate for the Polish accounting regulations.
Cash Management
Cash Management
- Bank Account Exchange Rate Adjustment
In compliance with Polish legal regulations, the value of cash withdrawals made in a foreign currency from cash desks and bank accounts should be calculated based on the exchange rate applied for the cash receipts paid in the same foreign currency to the cash register or bank account.
This means that the equivalent of the cash withdrawal amount in a local currency should be calculated based on the exchange rate used for the relevant cash receipt amount. This process is very similar to the way inventory is valued, and the methods for settling cash withdrawals against cash receipts are essentially the same as the ones used for inventory, i.e.
FIFO, LIFO, weighted average, where FIFO is the most commonly used. This method is used in Polish Localization when calculating the value of cash payments in a foreign currency.
Fixed assets management
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. Polish Localization provides the Annual Depreciation Plan report that specifies expected depreciation costs of fixed assets for a selected year.
- Fixed Assets Classification
The standard Business Central functionality has been enhanced with the possibility of assigning a fixed asset kind based on fixed assets classification to each fixed asset according to Fixed Asset Classification 2016. The reports in the fixed asset area have been enhanced with the possibility of grouping data based on fixed asset classification numbers assigned to fixed asset cards. Dynamics 365 Business Central provides tools for generating tables in compliance with the Asset Classification 2016. For fixed asset reports, it is possible to generate summaries according to the classification.
Inventory management
Inventory management
- Polish Classification of Products and Services (PKWiU)
The Polish Classification of Products and Services is intended for use in statistics analyses and reports, transaction recording, documentation and accounting, as well as in tax issues (including goods and services tax), official registers and public administration IT systems. The classification (PKWiU 2015) has been in force since 1 January 2016.
The PKWiU functionality, as part of Polish Localization, enables the user to record purchase and sales transactions including a product-specific PKWiU code.
- Intrastat Declarations
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. Polish Localization provides additional features in this area, including the verification of required information depending on the statistical threshold exceeded in import and export, the possibility of exporting the Intrastat declaration to an XML file containing required fields.
- 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 Localization provides the Physical Inventory Counting report which can be archived by the accounting department as a confirmation of the completed physical inventory counting process.
The physical inventory counting report 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.
- Working with General Business Posting Groups in Warehouse Transactions
General business posting group codes are used in the same way for production orders and assembly orders. Polish Localization allows you to define the default codes of the main business group also for surpluses and deficits resulting from inventory fluctuations.
Analysis and reports
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.
The G/L account net change and balance report presents the following values for all main 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 Bank Account – Detail Trial Balance shows details for transactions posted on selected bank accounts. This report can be used at the closing of an accounting or financial period. Within Polish Localization for Microsoft Dynamics 365 Business Central, it is possible to print reports with debit and credit amount columns.
- K/G Reports – Regarding Purchase, Sales and Service Transactions
Reports that can be printed solely on the basis of posted sales, purchase and service invoices or credit memos. The report can be used as a confirmation for posting a purchase transaction and show a posting entry with all information that is required by law such as G/L accounts, other ledger accounts, transaction currency, currency exchange rate information, etc.
- 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.
- Inventory Aging Analysis
The Inventory Aging Analysis report shows inventory quantities and values for any four selected periods.
- Fixed Assets Reports
In addition to standard Business Central reports, Polish Localization offers 4 additional fixed asset reports:
- Fixed Asset Card – The report combines the data from the standard Fixed Assets List and Fixed Assets Details reports and groups the details on the basis of fixed assets depreciation books.
- FA Receipt Report – The report is printed when a fixed asset has been received and is ready for use.
- FA Disposal Report – The report is printed when a fixed asset has been removed from the records when it is sold or disposed.
- FA Phys. Inventory List – This report is printed when the actual fixed asset book value and quantity is reconciled with the values and quantities recorded for the purpose of financial statements.
- International Trade in Services Report form
The International Trade in Services report is required by the Central Statistical Office. Business entities that operate in Poland and/or purchase services from counterparties from another country (non-residents) are required to provide the report.
Polish Localization for Microsoft Dynamics 365 Business Central provides functionality that allows you to prepare the data required in the DNU-K/DNU-R report by using service statistical codes. The application also offers a tool for compiling data related to different services types.
Standard Audit File (SAFT/JPK)
Standard Audit File (SAFT/JPK)
- SAF-T Setup
Polish Localization allows you to generate JPK (Standard Audit File for Taxation) files. The files can be generated in compliance with different structures including JPK_VAT structures with declaration, JPK_VAT, JPK_FA, JPK_WB, JPK_KR, JPK_MAG, JPK_7M/JPK_7K, JPK_KR_PD oraz JPK_ST_KR from 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. It is possible to assign G/L account attributes that identify the G/L accounts which is required to create a JPK_KR_PD.
The application contains the functionality of JPK areas, which allows you to select the required version of JPK when generating a file. Each of the JPK areas contains fields for additional elements that will have to be filled in during file export for a selected area. The structure of JPK files specified by the Ministry of Finance is subject to change. The continuous development of Polish Localization ensures compliance with the latest SAF-T structures.
- Executing File Export
The JPK functionality in Polish Localization allows you to prepare JPK_VAT, JPK_VAT, JPK_KR, JPK_FA, JPK_MAG, JPK_WB, JPK_7M/JPK_7K files in xml format. The files can be submitted to the Tax Office through the JPK Client WEB application provided by the Ministry of Finance or by a third-party program.
- 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 functionality in Polish Localization allows you to save generated JPK_VAT files with declaration, JPK_VAT, JPK_KR, JPK_FA, JPK_MAG and JPK_WB in the database and re-export them.
Split Payment
Split Payment
- 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 a 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 field is automatically selected if the conditions for the mandatory application of the split payment mechanism are met.
