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Introduction

This manual is designed to help you quickly and confidently learn Localization for Ireland for Dynamics 365 Business Central, ensuring a smooth start for your or your Customer’s organization within the Irish regulatory environment. It covers the information from the Localization for Ireland license activation to the individual functionalities available within the extension. We hope it serves you well in using our extension!

License Activation & User Assignment

Upon installation of the Localization for Ireland extension, it is required to accept the associate End User License Agreement (EULA), validate the license for the Microsoft Tenant ID and assign the users to access the application.

• Go to “Companial Licenses” page.

• Click on “Validate License” action.
• “End User Agreement License” window will pop up. Review the conditions and mark “I accept the terms and conditions” and Click OK.

• The following record will be created in “Companial Licenses” page.

• Click on “User Assignment” action

• “App User Assignment” page will pop up
• Select the Users that you want to include in the license and mark “License Enabled”

• The user will be enabled

• Once users are assigned, they will have access to the extension functionalities.

Permission Sets

The system contains one permission set that grants access to all Irish functionality:

EXW IE All

• Caption: All permissions
• Access Level: Internal

To Assign: Navigate to Users → Select user → User Permission Sets → Add EXW IE All

Initial Setup

Before using the Localization for Ireland functionality, complete the following setup steps.

VAT Report Setup

On VAT report setup, following fields must be configured:

• Vat return No. Series: Specifies the number that will be used for VAT return
• Vat return Period No. Series: Specifies the number that will be used for VAT return Period
• Report Version: Specifies the VAT report version that is used for the VAT reporting

VAT Setup

• Navigate to VAT Setup (search for "VAT Setup")

Locate the VAT3 Return FastTab

Configure the following fields:

Field	Description	Options
Mandatory VAT3 Export	If enabled, users cannot mark VAT returns as submitted until the VAT3 XML file has been generated	Yes/No
VAT3 Return Language	Language for VAT3 XML file	English (E) / Irish (I)
VAT3 Filing Frequency	How often VAT3 returns are submitted	Bi-Monthly / Repayment Only / Other / Four Monthly / Bi-Annual

Recommendation: Enable Mandatory VAT3 Export to ensure all returns are properly exported before submission.

VAT Report Configuration

• Navigate to VAT Report Configuration (search for "VAT Report Configuration")

Locate or create the configuration for VAT Report Type = VAT Return

Configure the following fields:

Field	Value	Description
VAT Report Type	VAT Return	Fixed value
VAT Report Version	Current	Description that identifies the report version for Ireland
Suggested Lines Codeunit ID	745	Standard BC codeunit
Content Codeunit ID	73011579	Ireland extension - generates VAT3 XML
Validate Codeunit ID	73011578	Ireland extension - validates VAT3

Country/Region Setup

The Ireland Localization allows you to customize the name of the "Post Code" field based on country-specific terminology.

• Navigate to Countries/Regions (search for "Countries/Regions")

Select a country (e.g., IE - Ireland)

In the Post Code Name field, enter the local term:

• Ireland: Eircode
• Other countries: Leave blank to use default "Post Code"

This setting automatically changes the field caption across all address-related pages and reports.

Note: Similar behaviour as “County Name” field

VAT3 Return Configuration

VAT Statement Setup

The VAT Statement must be structured according to Irish VAT3 Return requirements. The system requires exactly 7 box numbers:

Box No.	Description	VAT Type	Usage
T1	VAT on Sales	Sales	Total VAT collected on domestic sales
T2	VAT on Purchases	Purchase	Total VAT paid on domestic purchases
E1	Goods to other EU countries	Sales	Base amount (not VAT) for intra-EU goods sales
E2	Goods from other EU countries	Purchase	Base amount for intra-EU goods purchases
ES1	Services to other EU countries	Sales	Base amount for intra-EU services sales
ES2	Services from other EU countries	Purchase	Base amount for intra-EU services purchases
PA1	Postponed Accounting	Sales	VAT on reverse charge transactions

Configuring VAT Statement

• Navigate to VAT Statements (search for "VAT Statements")

Create or modify your VAT Statement Template for Ireland

Ensure each row includes:

• Row No. - Sequential number
• Description - Descriptive text
• Type - VAT Entry Totalling
• VAT Bus. Posting Group - Appropriate group (Domestic, EU)
• VAT Prod. Posting Group - Appropriate group (Goods, Services)
• Row Totalling - Formula for calculation
• Amount Type - Base or Amount
• Box No. - One of: T1, T2, E1, E2, ES1, ES2, PA1

Validation: When generating a VAT3 Return, the system validates that all 7 box numbers exist in your VAT Statement.

VAT3 Return Mapping

The VAT3 Return Mapping table links VAT Statement box numbers to XML elements in the VAT3 Return file.

Auto-Fill Mapping (Recommended)

• Navigate to VAT Return page

Click Actions → VAT3 Return Mapping

On the VAT3 Return Mapping page, click Auto-fill Mapping

The system creates default mappings:

VAT Statement Box	→	XML Element
T1	→	Sales
T2	→	Purchases
E1	→	Goods To
E2	→	Goods From
ES1	→	Services To
ES2	→	Services From
PA1	→	Postponed Accounting

Important: Mapping must be completed before generating any VAT3 Return XML files.

VAT3 Return Process

Creating VAT Return Periods

VAT Return Periods define the time frames for VAT reporting.

• Navigate to VAT Return Periods (search for "VAT Return Periods")

Click New and enter:

• Start Date - First day of VAT period (e.g., 01/01/2026)
• End Date - Last day of VAT period (e.g., 31/01/2026)
• Due Date - Submission deadline (e.g., 28/02/2026)

Click Create VAT Return to generate a new VAT Return

Standard VAT Return

Standard VAT Returns are the normal, periodic submissions to Irish Revenue.

Step 1: Create VAT Return

• From VAT Return Periods, click Create VAT Return (Also it can be created from VAT Returns list, “New” action)

A new VAT Return card opens

Select VAT Report Version (the one from VAT Report Configuration)

Specify Return Period (Start Date, End Date)

Period and Date fields will be automatically filled in based on the Return Period selected

VAT Report Type defaults to "Standard" (correct for initial returns)

Filing Frequency is automatically set from VAT Setup (can be changed if needed)

Step 2: Generate VAT Return Lines

• On the VAT Return card, click Actions → Suggest Lines

On the request page, configure:

• Include VAT Entries:
• Open - Entries not yet included in a settlement
• Closed - Entries already settled
• Open and Closed - All entries (most common)
• Include VAT Entries:
• Within Period - Only entries in this period
• Before and Within Period - Include prior period entries (if needed)
• VAT Statement Template - Select your Ireland template
• VAT Statement Name - Select your Ireland statement name

Click OK. The system populates the Report Lines FastTab with VAT amounts for each box.

Step 3: Review Report Lines

On the Report Lines FastTab, verify:

• Box No. - Should show T1, T2, E1, E2, ES1, ES2, PA1
• Description - Descriptive text from VAT Statement
• Base - Transaction base amounts
• Amount - VAT amounts

Step 4: Unusual Expenditure (if applicable)

If your business has unusual or exceptional expenditure that needs to be reported, proceed as follows:

• On the Unusual Expenditure FastTab:
• Unusual Expenditure - Set to Yes
• Unusual Expenditure Amount - Enter the amount
• Unusual Expenditure Details - Enter description (max 50 characters)

Step 5: Release VAT Return

• Click Actions → Release

The system validates:

• VAT return has lines
• No duplicate standard returns for the same period
• Start date is before end date

If validation passes, the status changes to Released.

Corrective VAT Return

Corrective VAT Returns replace a previously submitted Standard or Corrective return when errors are discovered.

Key Characteristics

• Replaces the original return completely
• Links to Original Report No.
• Updates the VAT3 Return No. field on affected VAT entries
• Only one corrective return allowed per original return
• Cannot correct a Supplementary return

Process

• Create a new VAT Return (from VAT Return Period or manually)

On the General FastTab:

• VAT Report Type - Select Corrective
• Original Report No. - Select the Standard or Corrective return being corrected

Click Suggest Lines

The system loads all the VAT entries from the Return Period selected

Complete Release → Generate → Submit workflow

Effect: When the corrective return is exported, VAT entries are updated to reference the new return number.

Supplementary VAT Return

Supplementary VAT Returns report additional transactions that were omitted from a Standard return.

Key Characteristics

• Adds to (does not replace) the original return
• Links to Original Report No.
• Uses VAT3 Suppl. Ret. No. field on VAT entries (separate from standard returns)
• Multiple supplementary returns allowed for the same original return
• Automatically filters out entries already included in other returns

Process

• Create a new VAT Return

On the General FastTab:

• VAT Report Type - Select Supplementary
• Original Report No. - Select the Standard return being supplemented

Click Suggest Lines

The system filters VAT entries to exclude:

• Entries already in the original Standard return
• Entries already in other Supplementary returns for this period

Complete Release → Generate → Submit workflow

Effect: VAT entries are marked with the Supplementary Return No., maintaining a separate audit trail.

Generating VAT3 XML File

Once a VAT Return is released, generate the XML file for submission to Irish Revenue.

Process

• On the released VAT Return, click Home → Generate

The system:

• Validates VAT3 Return Mapping is configured
• Exports VAT3 Return XML file
• Saves the file to your Downloads folder (default name: VAT3 Return.xml)
• Attaches the XML to the VAT Return as a Document Attachment

Note: Submitted VAT3 Return attachments cannot be deleted

• Marks VAT entries with the VAT Return No. and Supplementary VAT Return if applies.

XML File Contents

The VAT3 Return XML includes:

• Company Name and Registration Number (from Company Information)
• VAT Return Period (Start Date, End Date)
• Currency (default: E for Euro)
• VAT amounts for all 7 boxes (T1, T2, E1, E2, ES1, ES2, PA1)
• Form Version (fixed at 1)
• Language (English or Irish, from VAT Setup)
• Filing Frequency (from VAT Setup)
• Unusual Expenditure details (if applicable)

Submitting VAT Returns

Mark as Submitted

After uploading the VAT3 Return XML to Irish Revenue's ROS (Revenue Online Service):

• On the VAT Return card, click Actions → Mark as Submitted

Validation: If Mandatory VAT3 Export is enabled in VAT Setup, the system blocks submission if no VAT3 XML has been generated

The status changes to Submitted

Important: In Ireland, submitted VAT Returns cannot be modified. If changes are needed, create a Corrective or Supplementary return.

Mark as Accepted

Once Irish Revenue confirms acceptance of the VAT3 Return:

• Click Actions → Mark as Accepted

The status changes to Accepted

VAT Settlement

After the VAT return is accepted, post the VAT settlement:

• Navigate to Calc. and Post VAT Settlement (search for "Calc. and Post VAT Settlement")

Enter the appropriate date range and posting date

Click OK to post the settlement

This creates balancing entries in the General Ledger and closes the VAT entries for the period.

VAT Entries

The VAT Entries page has been enhanced to show which VAT returns included each entry.

Additional Fields

• Navigate to VAT Entries (search for "VAT Entries")

Two new columns are visible:

• VAT3 Return No. - Shows the Standard or Corrective return that included this entry
• VAT3 Suppl. Ret. No. - Shows the Supplementary return that included this entry

Audit Trail

These fields provide complete traceability:

• Identify which entries were included in which returns
• Distinguish between standard and supplementary reporting
• Support audit requests for entry-level details

Example:

Entry #12345:

• VAT3 Return No. = VATR-001 (Standard return for Jan-Feb 2026)
• VAT3 Suppl. Ret. No. = (blank)

Entry #12789:

• VAT3 Return No. = VATR-001 (Standard return for Jan-Feb 2026)
• VAT3 Suppl. Ret. No. = VATR-005 (Supplementary for omitted entries)

VAT Reporting

VAT Audit Report

The VAT Audit Report exports data in CSV format for audit purposes. It provides three separate exports:

Accessing the Report

• Navigate to VAT Statements (search for "VAT Statements")

Click Reports → VAT Audit Report

Report Request Page:

• Data Set Selection (Checkboxes):
• Export Customers: Export the Customer master data table
• Export Open Payments: Export all customer open receivable entries (unpaid invoices showing as negative amounts)
• Export Late Invoicing: Export closed payment entries where the delay between payment posting and invoice posting exceeds the Late Invoice Delay threshold
• Export Vendors: Export the Vendor master data table
• Export VAT Entries: Export the VAT Entry table for the specified period
• Configuration Parameters:
• Late Invoice Delay (Days): Threshold in days for identifying late invoicing scenarios (default: 14 days)
• Example: If set to 14 days, the report identifies closed payments where the invoice was posted more than 14 days after the payment date
• Purpose: Helps detect cash-basis accounting irregularities or delayed invoicing practices
• File Name Configuration: Default filenames are automatically assigned:
• Customer.CSV
• OpenPay.CSV
• LateInv.CSV
• Vendor.CSV
• VATentry.CSV
• Date Filters:
• VAT Entry dataset: Explicit date range filters available ("VAT Reporting Date" and "Posting Date")
• Other datasets (Customer, Vendor, Ledger Entries): Standard table filters available but no specific date range filter on request page

• User Feedback. Progress windows display during export for each dataset:
• "Exporting Customers..."
• "Exporting Open Payments..."
• "Exporting Late Invoicing Entries..."
• "Exporting Vendors..."
• "Exporting VAT Entries..."
• Current record being processed is displayed

Exported Data Sets

Note: Only one table is exported (the latest from the list of checks on the request page) following the GB Audit Report behavior.

• Customer Master Data:

Field	Type	Description
Customer No.	Text	Customer number
Name	Text	Customer name
Address	Text	Address line 1
Address 2	Text	Address line 2
City	Text	City
County	Text	County (Irish localization field)
Post Code	Text	Postal code/Eircode

• Open Payments (Outstanding Receivables):

Field	Type	Description
Entry No.	Integer	Ledger entry number
Customer No.	Text	Customer number
Description	Text	Entry description
Document Type	Text	Document type (formatted as text)
Document No.	Text	Document number
Posting Date	Date	Entry posting date
Original Amount	Decimal	Original amount in LCY (CalcField)

Note: Includes open customer ledger entries with negative amounts (unpaid invoices/receivables from customer perspective)

• Late Invoicing:

Field	Type	Description
Entry No.	Integer	Payment entry number
Customer No.	Text	Customer number
Description	Text	Entry description
Document Type	Text	Document type (formatted as text)
Document No.	Text	Document number
Payment Posting Date	Text	Posting date of the payment entry
Invoice Posting Dates	Text	Semicolon-delimited list of invoice posting dates that exceeded the threshold (max 250 characters)
Original Amount	Decimal	Original amount in LCY (CalcField)

Note: Identifies closed payment entries where invoicing occurred more than [Late Invoice Delay] days after payment, searching both forward and reverse application relationships

• Vendor Master Data:

Field	Type	Description
Vendor No.	Text	Vendor number
Name	Text	Vendor name
Address	Text	Address line 1
Address 2	Text	Address line 2
City	Text	City
County	Text	County
Post Code	Text	Postal code

• VAT Entries:

Field	Type	Description
Posting Date	Date	Transaction posting date
VAT Reporting Date	Date	VAT reporting date (may differ from posting date per EU rules)
Document No.	Text	Internal document number
Document Type	Text	Document type (formatted as text)
Base Amount	Decimal	VAT base amount
VAT Amount	Decimal	VAT amount
VAT Calculation Type	Text	Normal VAT, Reverse Charge, etc.
Type	Text	Sale or Purchase
Bill-to/Pay-to No.	Text	Customer/Vendor number
External Document No.	Text	Vendor invoice number or external reference
Entry No.	Integer	VAT entry number

VAT Entry Exception Report

The VAT Entry Exception Report identifies VAT entries with potential errors or unusual characteristics.

Accessing the Report

• Navigate to VAT Statements

Click Reports → VAT Entry Exception Report

Report Request Page

• Validation Checks (Checkboxes):
• Check VAT Base Discount: Identifies entries where the VAT Base Discount % field exceeds maximum base discount percentage
• Check Manual VAT Difference: Flags manual VAT adjustments (VAT Difference field) above specified threshold
• Check VAT Calculation Types: Detects mismatches between VAT entry calculation type and VAT posting setup configuration
• Check VAT Rate: Identifies calculated VAT rate differences exceeding tolerance percentage

Note: At least one validation check must be enabled to run the report.

• Threshold Parameters:
• Maximum VAT Base Discount %: Upper limit for base discount (0-100%, e.g., 5%)
• Default: Initialized from General Ledger Setup "VAT Tolerance %" field
• Maximum Manual VAT Difference: Absolute amount threshold for manual adjustments (e.g., 100)
• Default: Initialized from General Ledger Setup "Max. VAT Difference Allowed" field
• Maximum VAT Rate % Difference: Tolerance for calculated VAT rate variations (0-100%, e.g., 0.1%)
• Default: 0.1% if not previously set
• Standard Filters:
• VAT Reporting Date range (recommended for performance)
• Type (Purchase/Sale)
• VAT Business Posting Group
• VAT Product Posting Group
• Other standard VAT Entry filters
• Exception Details (per entry):
• Entry No.: VAT Entry identifier
• VAT Reporting Date: Date used for VAT reporting
• Document Type: Invoice, Credit Memo, etc.
• Document No.: Internal document number
• External Document No.: Vendor/customer document reference
• VAT Calculation Type: Normal VAT, Reverse Charge VAT, Full VAT, etc.
• VAT Business/Product Posting Groups: Posting group combination
• Base: VAT base amount
• VAT Base Discount %: Discount percentage applied to base
• Amount: VAT amount
• VAT Difference: Manual VAT adjustment amount
• ErrorText: Comma-separated description of all validation failures for this entry
• Grouping and Totals:
• Entries grouped by Type (Purchase/Sale)
• Subtotals per Type showing aggregate Base, Amount, and VAT Difference
• Group header displays: "Total for Type [Purchase/Sale]"
• Validation Logic
• VAT Base Discount Check:
• Compares the "VAT Base Discount %" field value from VAT Entry to the user-specified maximum threshold
• Flags entries where the field value exceeds the maximum percentage
• Helps identify unusual discount patterns that may require justification
• Error message format: "VAT Base Discount % > [threshold]"
• Manual VAT Difference Check:
• Compares the absolute value of the "VAT Difference" field from VAT Entry to the maximum threshold
• The VAT Difference field contains manual adjustments made during posting
• Flags entries where Abs(VAT Difference) > threshold
• Detects manual interventions that may need documentation for audit purposes
• Error message format: "VAT Difference > [threshold]"
• VAT Calculation Type Check:
• Compares VAT Entry "VAT Calculation Type" to the expected type from VAT Posting Setup
• Retrieves expected type using VAT Bus. Posting Group + VAT Prod. Posting Group combination
• Flags mismatches that could indicate incorrect posting group selection or setup issues
• Special handling: If VAT Posting Setup combination doesn't exist, expected type = "Missing"
• Helps ensure consistency with configuration
• Error message format: "Setup VAT Calculation Type is [actual] compared to setup [expected]"
• VAT Rate Check:
• Calculates effective VAT rate from Base and Amount after applying base discount

Calculation steps:

• Adjust Base: Adjusted Base = Base × (1 - VAT Base Discount % / 100)
• Calculate Rate: Calculated Rate = (Amount / Adjusted Base) × 100
• Compares calculated rate to configured "VAT %" from VAT Posting Setup
• Flags differences exceeding tolerance threshold
• Special Handling:
• Reverse Charge VAT entries excluded from rate validation (0% VAT expected)
• Zero base detection: If Base = 0 but Amount <> 0, flags as exception
• Error message formats:
• "VAT % is [calculated] compared to setup [expected]" (rate mismatch)
• "Base is 0 and Amount is <> 0" (zero base exception)
• Data Sources
• VAT Entry: Transaction data containing posted VAT entries
• VAT Posting Setup: Reference configuration for expected VAT calculation types and rates
• General Ledger Setup: Source of default threshold values

Sales Documents

Posted Sales Invoice

Irish tax authorities require the customer's VAT Registration Number to be displayed on VAT invoices.

• Standard Sales - Invoice Report (Extended)
• New Data Column:
• Customer VAT Registration No.: Retrieved from Customer table
• Custom Layout:
• Layout Name: "Sales Invoice - VAT Spec (Word) IE"
• Format: Word (.docx)
• Display Location: Customer VAT registration number printed in customer information section.

Posted Sales Credit Memo

Similar to invoices, credit memos must display the customer's VAT Registration Number.

• Standard Credit Memos Report (Extended)
• New Data Column:
• Customer VAT Registration No.: Retrieved from Customer table
• Custom Layout:
• Layout Name: "Sales Credit Memo (Word) IE"
• Format: Word (.docx)
• Display Location: Customer VAT registration number printed in customer information section.

Report Selection

Irish localized layouts available in Report Selection for Sales Invoice and Credit Memo. Administrators can set these as default layouts for all sales documents.

Post Code Localization

The Ireland Localization includes a comprehensive Post Code Caption Class system that dynamically changes the "Post Code" field name based on the country.

How It Works

• Each Country/Region record can define a Post Code Name
• When that country is selected on an address, the field caption changes automatically
• Example: Ireland uses "Eircode" instead of "Post Code"

Affected Modules

The Post Code Caption Class applies to all those tables across all modules:

Foundation

• Company Information
• Standard Address
• Autocomplete Address

Sales

• Customer, Customer Bank Account, Customer Template
• Sales documents (Quote, Order, Invoice, Credit Memo, Return Order)
• Posted Sales documents (Shipment, Invoice, Credit Memo, Return Receipt)
• Archived Sales documents
• Ship-to Address
• Reminder/Fin. Charge documents
• All Sales Entity Buffers (API integration)

Purchases

• Vendor, Vendor Bank Account, Vendor Template
• Purchase documents (Quote, Order, Invoice, Credit Memo, Return Order)
• Posted Purchase documents (Receipt, Invoice, Credit Memo, Return Shipment)
• Archived Purchase documents
• Order Address, Remit Address
• All Purchase Entity Buffers

Services

• Service Item
• Service documents (Quote, Order, Invoice, Credit Memo)
• Posted Service documents
• Service Contracts (Active and Filed)

Projects

• Resource
• Job, Job Task
• Job Archive, Job Task Archive

Inventory/Manufacturing

• Location, Responsibility Centre
• Transfer documents (Header, Shipment, Receipt)
• Work Centre, Machine Centre

Human Resources

• Employee, Employee Template
• Alternative Address
• Union

CRM

• Contact
• Contact Alternative Address

Bank

• Bank Account
• Payment Export Data

Intercompany

• All IC Inbox/Outbox Sales and Purchase headers (10 tables)

Configuration Example

Country	Post Code Name	Result
IE (Ireland)	Eircode	Field shows as "Eircode"
US (United States)	ZIP Code	Field shows as "ZIP Code"
DE (Germany)	(blank)	Field shows as "Post Code"

User Experience

When entering a customer address:

• Select Country/Region Code = IE

The Post Code field automatically relabels to Eircode

Users see the familiar local terminology