Changes to NAV that apply to default law

What is promised is the debt and, as I have already said, I would like to give you a brief summary of a change incorporated in the updates (Cumulative Updates) of Microsoft Dynamics NAV in May, related to the Late Payment Law and which is interesting to know about.

The object affected by the change is the “Report 10748: Supplier – Payments due”.

Table of Contents
  1. Fundamentals:
  2. Article 5 establishes the formulas for calculating the average payment period to suppliers:
  3. The changes introduced in the NAV are limited to "Report 10748 - Supplier - Payments due", and are as follows:
  4. Sources:

Fundamentals:

On February 4, 2016, the following resolution was published on the BOE:

"Resolution of 29 January 2016 of the Institute of Accounting and Auditing, on the information to be included in the report on annual accounts in relation to the average period of payment to suppliers in commercial operations."

Which essentially has as its main objective that of systematising and clarifying the information that commercial companies must collect in the report on individual and consolidated annual accounts, for the purposes of the information obligation provided for by the third additional provision of Law 15/2010, of 5 July, which amends law 3/2004, of 29 December, which establishes measures to combat late payments in commercial transactions.

Article 5 establishes the formulas for calculating the average payment period to suppliers:

  • Trading companies that prepare the normal memory model will calculate the average payment period to suppliers according to the following formula:
  • The ratio of paid operations will be calculated according to the following formula:

By number of payment days we mean the calendar days elapsed from the start date of the calculation of the term until the actual payment of the operation.

  • The ratio of operations awaiting payment will be calculated according to the following formula:

The number of days waiting for payment means the calendar days elapsed from the date on which the calculation of the term begins until the last day of the period to which the annual accounts refer.

  • To calculate both the number of days of payment and the number of days awaiting payment, the company will start calculating the period from the date of receipt of the goods or provision of services. However, in the absence of reliable information on when this circumstance occurs, the date of receipt of the invoice may be taken into account.
  • Commercial companies that draw up the report in the abbreviated form of the General Accounting Plan, or that opt ​​for the application of the General Accounting Plan for Small and Medium Enterprises, will calculate the average payment period to suppliers according to the following formula:

For these exclusive purposes, the concept of commercial creditors includes the entries of suppliers and other creditors for debts to suppliers of goods or services falling within the scope of application of the legislation relating to legal payment terms.

The concept of net purchases and expenses for external services includes the amounts recorded as such in the subgroups proposed in the fifth part of the General Accounting Plan and the General Accounting Plan of Small and Medium-Sized Enterprises.

The changes introduced in the NAV are limited to "Report 10748 - Supplier - Payments due", and are as follows:

  1. The report counts the values ​​for Average payment period to Suppliers Yes Ratio of pending payment transactions (by supplier and total).
  2. “Weighted average deadline exceeded” is now displayed as “Report of paid transactions” with a small change in the way it is calculated: the number of paydays will be negative (instead of 0) if the payment is made before the Due Date. The formulas for the 3 new values ​​are as follows:

* pay days = calendar days calculated from the due date to the current payment (this value was already calculated, but only for overdue payments). If the payment is made before the legal deadline, this value will be negative.

* days of outstanding payment = (payment days for open documents) calendar days calculated from the legal due date to the closing day of the annual accounts. In the NAV, it will be the "End Date" that we enter on the report request page.

As I had already mentioned, starting from the May CU these new features were introduced, namely:

  • NAV 2016: Cumulative Update 07
  • NAV 2015: Cumulative Update 19
  • NAV 2013 R2: Cumulative Update 31
  • NAV 2013: Cumulative Update 38

You have access to the CUs mentioned here: May cumulative updates.

I hope I have been of help and clarification.

Salu2, Miguel Llorca.

Sources:

Official State Gazette (BOE)

Dynamics NAV Spanish Support Team blog

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