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Comply with the Qualified Invoice System in Japan

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This content is archived and is not being updated. For the latest documentation, go to What's new or changed in Dynamics 365 Finance. For the latest release plans, go to Dynamics 365, Power Platform, and Cloud for Industry release plans.

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Users by admins, makers, or analysts - Jul 28, 2023

Business value

The extended invoicing functionality in Accounts payable and Accounts receivable provides capabilities that can help you stay compliant with the new Qualified Invoice System requirements in Japan.

Feature details

Japan is enforcing Qualified Invoice System requirements starting October 1, 2023.

Microsoft Dynamics 365 Finance includes capabilities aimed at supporting certain requirements of the Qualified Invoice System:

  • The Registration IDs framework is extended to provide the possibility to maintain the qualified invoice issuer registration numbers of the company and its counterparts, including vendors and customers. The qualified invoice issuer number of the company can be printed on Japan-specific customer invoice layouts, such as sales invoices, free text invoices, and project invoices.

    You can use Finance to configure sales tax so that the tax calculation and rounding per sales tax code can happen on the invoice level. Total tax breakdown per sales tax code can also be printed on customer invoice layouts.

    The above capabilities are included in version 10.0.34.

  • In Japan, it's common for businesses to issue monthly invoices to their customers and not per individual shipment. In Finance for Japan, the consolidated invoice functionality supports this business practice. The functionality is extended to comply with the Qualified Invoice System requirements. This includes:

    • Recalculating and rounding consumption taxes per sales tax code on the consolidated invoice level.
    • Posting corresponding tax adjustments.
    • Printing the qualified invoice issuer number of the company and the total tax breakdown per sales tax code on the consolidated invoice layout.

    The consolidated invoice update is released as a quality update for version 10.0.34 and later versions.