diff --git a/src/Apps/W1/ExpenseAgent/app/src/APIs/ExpenseVATSpecAPI.Page.al b/src/Apps/W1/ExpenseAgent/app/src/APIs/ExpenseVATSpecAPI.Page.al
index 9edfddd58aa..928ca56dde3 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/APIs/ExpenseVATSpecAPI.Page.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/APIs/ExpenseVATSpecAPI.Page.al
@@ -105,4 +105,28 @@ page 7085 "Expense VAT Spec. API"
     begin
         ExpenseAgentAPIValidation.VerifyAgentAccess();
     end;
+
+    trigger OnNewRecord(BelowxRec: Boolean)
+    begin
+        VerifyExpenseAgentCaller();
+        Rec.Source := Rec.Source::Agent;
+    end;
+
+    trigger OnInsertRecord(BelowxRec: Boolean): Boolean
+    begin
+        VerifyExpenseAgentCaller();
+        Rec.Source := Rec.Source::Agent;
+        exit(true);
+    end;
+
+    var
+        ExpenseAgentCallerRequiredErr: Label 'Only the Expense Agent application can create agent-authored VAT specifications.';
+
+    local procedure VerifyExpenseAgentCaller()
+    var
+        ExpenseAgentAPIValidation: Codeunit "Expense Agent API Validation";
+    begin
+        if not ExpenseAgentAPIValidation.IsCurrentUserExpenseAgent() then
+            Error(ExpenseAgentCallerRequiredErr);
+    end;
 }
diff --git a/src/Apps/W1/ExpenseAgent/app/src/Expense/Pages/ExpenseVATSpecification.Page.al b/src/Apps/W1/ExpenseAgent/app/src/Expense/Pages/ExpenseVATSpecification.Page.al
index c0eab5ebcb4..43a54638637 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/Expense/Pages/ExpenseVATSpecification.Page.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/Expense/Pages/ExpenseVATSpecification.Page.al
@@ -66,4 +66,10 @@ page 7084 "Expense VAT Specification"
             }
         }
     }
+
+    trigger OnInsertRecord(BelowxRec: Boolean): Boolean
+    begin
+        Rec.Source := Rec.Source::"Manual";
+        exit(true);
+    end;
 }
diff --git a/src/Apps/W1/ExpenseAgent/app/src/Expense/Tables/Expense.Table.al b/src/Apps/W1/ExpenseAgent/app/src/Expense/Tables/Expense.Table.al
index 0661c3eb9dd..dc099b9a911 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/Expense/Tables/Expense.Table.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/Expense/Tables/Expense.Table.al
@@ -788,6 +788,7 @@ table 6900 Expense
         NonRefundableAmountCannotBeNegativeErr: Label '%1 cannot be in negative on Expense No. %2.', Comment = '%1 = Field Caption, %2 = Expense No.';
         ExpenseUserMustBeLinkedToAnEmployeeErr: Label 'Expense User %1 must be linked to an Employee No.', Comment = '%1 = Expense User No.';
         BillableCustomerAndProjectErr: Label 'You cannot use both %1 and %2 at the same time.', Comment = '%1 = Billable to Customer field caption, %2 = Project No. field caption';
+        ModifyOrDeleteErr: Label 'Modifications and delete are not allowed for records created by the Expense Agent API.';
 
     procedure AssistEdit() Result: Boolean
     begin
@@ -1309,6 +1310,7 @@ table 6900 Expense
 
     internal procedure UpdateVATSpecification(ExpenseNo: Code[20])
     var
+        ExpenseCategory: Record "Expense Category";
         ExpenseItemization: Record "Expense Itemization";
         ExpenseVATSpec: Record "Expense VAT Specification";
         TempExpenseVATSpec: Record "Expense VAT Specification" temporary;
@@ -1318,33 +1320,59 @@ table 6900 Expense
         if ExpenseAgentSetup."Default VAT Bus. Posting Group" = '' then
             exit;
 
-        ExpenseItemization.SetRange("Expense No.", ExpenseNo);
-        if ExpenseItemization.IsEmpty() then
-            exit;
-
         ExpenseVATSpec.SetRange("Expense No.", ExpenseNo);
-        ExpenseVATSpec.DeleteAll();
-
-        LineNo := 0;
-        ExpenseItemization.FindSet();
-        repeat
-            TempExpenseVATSpec.SetRange("Expense Category", ExpenseItemization."Expense Category Code");
-            TempExpenseVATSpec.SetRange("Expense Subcategory", ExpenseItemization."Expense Subcategory Code");
-            if TempExpenseVATSpec.FindFirst() then begin
-                TempExpenseVATSpec."Amount" += ExpenseItemization."Amount";
-                TempExpenseVATSpec.Modify();
-            end else begin
-                TempExpenseVATSpec.Init();
-                TempExpenseVATSpec."Expense No." := ExpenseNo;
-                LineNo += 1;
-                TempExpenseVATSpec."Line No." := LineNo;
-                TempExpenseVATSpec.Validate("Expense Category", ExpenseItemization."Expense Category Code");
-                TempExpenseVATSpec.Validate("Expense Subcategory", ExpenseItemization."Expense Subcategory Code");
-                TempExpenseVATSpec.Validate("VAT Bus. Posting Group", ExpenseAgentSetup."Default VAT Bus. Posting Group");
-                TempExpenseVATSpec.Validate("Amount", ExpenseItemization.Amount);
-                TempExpenseVATSpec.Insert();
-            end;
-        until ExpenseItemization.Next() = 0;
+        ExpenseVATSpec.SetRange(Source, ExpenseVATSpec.Source::Agent);
+        if not ExpenseVATSpec.IsEmpty() then
+            error(ModifyOrDeleteErr);
+
+        ExpenseCategory.Get("Expense Category");
+        case ExpenseCategory."Expense Detail Required" of
+            ExpenseCategory."Expense Detail Required"::Itemize:
+                begin
+                    ExpenseItemization.SetRange("Expense No.", ExpenseNo);
+                    if not ExpenseItemization.IsEmpty() then begin
+                        ExpenseVATSpec.SetRange(Source);
+                        ExpenseVATSpec.DeleteAll();
+
+                        LineNo := 0;
+                        ExpenseItemization.FindSet();
+                        repeat
+                            TempExpenseVATSpec.SetRange("Expense Category", ExpenseItemization."Expense Category Code");
+                            TempExpenseVATSpec.SetRange("Expense Subcategory", ExpenseItemization."Expense Subcategory Code");
+                            if TempExpenseVATSpec.FindFirst() then begin
+                                TempExpenseVATSpec.Validate(Amount, TempExpenseVATSpec.Amount + ExpenseItemization.Amount);
+                                TempExpenseVATSpec.Modify();
+                            end else begin
+                                TempExpenseVATSpec.Init();
+                                TempExpenseVATSpec.Source := TempExpenseVATSpec.Source::Manual;
+                                TempExpenseVATSpec."Expense No." := ExpenseNo;
+                                LineNo += 1;
+                                TempExpenseVATSpec."Line No." := LineNo;
+                                TempExpenseVATSpec.Validate("Expense Category", ExpenseItemization."Expense Category Code");
+                                TempExpenseVATSpec.Validate("Expense Subcategory", ExpenseItemization."Expense Subcategory Code");
+                                TempExpenseVATSpec.Validate("VAT Bus. Posting Group", ExpenseAgentSetup."Default VAT Bus. Posting Group");
+                                TempExpenseVATSpec.Validate("Amount", ExpenseItemization.Amount);
+                                TempExpenseVATSpec.Insert();
+                            end;
+                        until ExpenseItemization.Next() = 0;
+                    end;
+                end;
+            else
+                if ExpenseCategory."VAT Prod. Posting Group" <> '' then begin
+                    ExpenseVATSpec.SetRange(Source);
+                    ExpenseVATSpec.DeleteAll();
+
+                    TempExpenseVATSpec.Init();
+                    TempExpenseVATSpec.Source := TempExpenseVATSpec.Source::Manual;
+                    TempExpenseVATSpec."Expense No." := ExpenseNo;
+                    LineNo += 1;
+                    TempExpenseVATSpec."Line No." := LineNo;
+                    TempExpenseVATSpec.Validate("Expense Category", "Expense Category");
+                    TempExpenseVATSpec.Validate("VAT Bus. Posting Group", ExpenseAgentSetup."Default VAT Bus. Posting Group");
+                    TempExpenseVATSpec.Validate("Amount", Amount);
+                    TempExpenseVATSpec.Insert();
+                end;
+        end;
 
         TempExpenseVATSpec.Reset();
         if TempExpenseVATSpec.FindSet() then
diff --git a/src/Apps/W1/ExpenseAgent/app/src/Expense/Tables/ExpenseVATSpecification.Table.al b/src/Apps/W1/ExpenseAgent/app/src/Expense/Tables/ExpenseVATSpecification.Table.al
index 7f8c2aec658..6157d275f2f 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/Expense/Tables/ExpenseVATSpecification.Table.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/Expense/Tables/ExpenseVATSpecification.Table.al
@@ -34,10 +34,12 @@ table 6918 "Expense VAT Specification"
             trigger OnValidate()
             begin
                 GetExpense();
-                if Expense."Expense Category" <> '' then
-                    Validate("Expense Category", "Expense Category");
-                if Expense."Expense Subcategory" <> '' then
-                    Validate("Expense Subcategory", "Expense Subcategory");
+                if Source <> Source::Agent then begin
+                    if Expense."Expense Category" <> '' then
+                        Validate("Expense Category", "Expense Category");
+                    if Expense."Expense Subcategory" <> '' then
+                        Validate("Expense Subcategory", "Expense Subcategory");
+                end;
             end;
         }
         field(2; "Line No."; Integer)
@@ -57,12 +59,14 @@ table 6918 "Expense VAT Specification"
 
             trigger OnValidate()
             begin
-                InitializeCurrency();
-                "VAT Amount" := Round(Amount * "VAT %" / (100 + "VAT %"), Currency."Amount Rounding Precision", Currency.VATRoundingDirection());
-                "VAT Base Amount" := Round(Amount - "VAT Amount", Currency."Amount Rounding Precision");
-                "VAT Difference" := 0;
-                "VAT Amount (LCY)" := CalcVATAmountLCY();
-                "VAT Base Amount (LCY)" := "Amount (LCY)" - "VAT Amount (LCY)";
+                if Source <> Source::Agent then begin
+                    InitializeCurrency();
+                    "VAT Amount" := Round(Amount * "VAT %" / (100 + "VAT %"), Currency."Amount Rounding Precision", Currency.VATRoundingDirection());
+                    "VAT Base Amount" := Round(Amount - "VAT Amount", Currency."Amount Rounding Precision");
+                    "VAT Difference" := 0;
+                    "VAT Amount (LCY)" := CalcVATAmountLCY();
+                    "VAT Base Amount (LCY)" := "Amount (LCY)" - "VAT Amount (LCY)";
+                end;
             end;
         }
         field(11; "VAT Base Amount"; Decimal)
@@ -91,7 +95,8 @@ table 6918 "Expense VAT Specification"
 
             trigger OnValidate()
             begin
-                ValidateAmount();
+                if Source <> Source::Agent then
+                    ValidateAmount();
             end;
         }
         /// <summary>
@@ -151,17 +156,17 @@ table 6918 "Expense VAT Specification"
 
             trigger OnValidate()
             begin
-                GetExpense();
-                if Expense."Currency Code" = '' then begin
-                    Amount := "Amount (LCY)";
-                    Validate(Amount);
-                end else begin
-                    TestField("Amount (LCY)");
-                    TestField(Amount);
-                    Expense."Currency Factor" := Amount / "Amount (LCY)";
+                if Source <> Source::Agent then begin
+                    GetExpense();
+                    if Expense."Currency Code" = '' then begin
+                        Amount := "Amount (LCY)";
+                        Validate(Amount);
+                    end else begin
+                        TestField("Amount (LCY)");
+                        TestField(Amount);
+                    end;
+                    Validate("VAT %");
                 end;
-
-                Validate("VAT %");
             end;
         }
         field(27; "Expense Category"; Code[20])
@@ -174,14 +179,16 @@ table 6918 "Expense VAT Specification"
             var
                 ExpenseCategory: Record "Expense Category";
             begin
-                if "Expense Category" = '' then
-                    exit;
-                if "Expense Subcategory" <> '' then
-                    exit;
-                if ExpenseCategory.Get("Expense Category") then begin
-                    "VAT Prod. Posting Group" := ExpenseCategory."VAT Prod. Posting Group";
-                    "VAT %" := ExpenseCategory."Default VAT %";
-                    Validate("VAT %");
+                if Source <> Source::Agent then begin
+                    if "Expense Category" = '' then
+                        exit;
+                    if "Expense Subcategory" <> '' then
+                        exit;
+                    if ExpenseCategory.Get("Expense Category") then begin
+                        "VAT Prod. Posting Group" := ExpenseCategory."VAT Prod. Posting Group";
+                        "VAT %" := ExpenseCategory."Default VAT %";
+                        Validate("VAT %");
+                    end;
                 end;
             end;
         }
@@ -196,6 +203,9 @@ table 6918 "Expense VAT Specification"
                 ExpenseSubcategory: Record "Expense Subcategory";
                 ExpenseCategory: Record "Expense Category";
             begin
+                if Source = Source::Agent then
+                    exit;
+
                 if "Expense Subcategory" <> '' then begin
                     if ExpenseSubcategory.Get("Expense Category", "Expense Subcategory") then begin
                         "VAT Prod. Posting Group" := ExpenseSubcategory."VAT Prod. Posting Group";
@@ -214,6 +224,8 @@ table 6918 "Expense VAT Specification"
         field(40; Source; Enum "Expense VAT Spec Source")
         {
             Caption = 'Source';
+            Editable = false;
+            DataClassification = SystemMetadata;
             ToolTip = 'Specifies how this VAT specification line was created, for example whether it was entered manually or extracted automatically from a receipt.';
         }
         field(41; Confidence; Decimal)
@@ -249,11 +261,24 @@ table 6918 "Expense VAT Specification"
         end;
     end;
 
+    trigger OnModify()
+    begin
+        if Source = Source::Agent then
+            error(ModifyOrDeleteErr);
+    end;
+
+    trigger OnDelete()
+    begin
+        if Source = Source::Agent then
+            error(ModifyOrDeleteErr);
+    end;
+
     var
         Currency: Record Currency;
         CurrExchRate: Record "Currency Exchange Rate";
         Expense: Record Expense;
         ExpenseAgentSetup: Record "Expense Agent Setup";
+        ModifyOrDeleteErr: Label 'Modifications and delete are not allowed for records created by the Expense Agent API.';
 
     local procedure CalcVATAmountLCY(): Decimal
     var
diff --git a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/CreateExpenseReport.Codeunit.al b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/CreateExpenseReport.Codeunit.al
index 32f7a184923..8ee647bd12b 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/CreateExpenseReport.Codeunit.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/CreateExpenseReport.Codeunit.al
@@ -177,7 +177,7 @@ codeunit 6983 "Create Expense Report"
         ExpenseReportLine.Validate("Expense User No.", Expense."Expense User No.");
         ExpenseReportLine.Validate("Expense Category", Expense."Expense Category");
         ExpenseReportLine.Validate("Expense Subcategory Code", Expense."Expense Subcategory");
-        ExpenseReportLine.Validate("Expense Location", Expense."Expense Location");
+        ExpenseReportLine.Validate("Expense Location", CopyStr(Expense."Expense Location", 1, 20));
         if Expense.Description <> '' then
             ExpenseReportLine.Validate(Description, Expense.Description);
         if ExpenseReportLine."Expense Subcategory Code" <> '' then
@@ -327,6 +327,8 @@ codeunit 6983 "Create Expense Report"
             ExpenseReportLineVATSpec."VAT Amount" := ExpenseVATSpec."VAT Amount";
             ExpenseReportLineVATSpec.Amount := ExpenseVATSpec.Amount;
             ExpenseReportLineVATSpec."VAT Difference" := ExpenseVATSpec."VAT Difference";
+            ExpenseReportLineVATSpec."Currency Code" := Expense."Currency Code";
+            ExpenseReportLineVATSpec."Currency Factor" := Expense."Currency Factor";
             ExpenseReportLineVATSpec."VAT Bus. Posting Group" := ExpenseVATSpec."VAT Bus. Posting Group";
             ExpenseReportLineVATSpec."VAT Prod. Posting Group" := ExpenseVATSpec."VAT Prod. Posting Group";
             ExpenseReportLineVATSpec."VAT Amount (LCY)" := ExpenseVATSpec."VAT Amount (LCY)";
@@ -340,6 +342,7 @@ codeunit 6983 "Create Expense Report"
             else
                 if ExpenseCategory.Get(ExpenseVATSpec."Expense Category") then
                     ExpenseReportLineVATSpec.Validate("Reclaim %", ExpenseCategory."Default VAT Reclaim %");
+            ExpenseReportLineVATSpec.UpdateReimbursementAmounts();
             ExpenseReportLineVATSpec.Insert();
         until ExpenseVATSpec.Next() = 0;
 
diff --git a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/ExpenseReportPost.Codeunit.al b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/ExpenseReportPost.Codeunit.al
index af7abe1c8bf..258d726541c 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/ExpenseReportPost.Codeunit.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/ExpenseReportPost.Codeunit.al
@@ -71,7 +71,9 @@ codeunit 6987 "Expense Report-Post"
         AgentNotEnabledErr: Label 'Please make sure the Expense Agent is active.';
         CommunicationDisabledErr: Label 'Sending emails to users is turned off. Turn on Communication for the Expense Agent before sending reimbursement notifications.';
         NoNoreplyAccountErr: Label 'No account is set for sending emails. Set the send mail account for the Expense Agent before sending reimbursement notifications.';
+        NotApprovedForVATReclaimCategoryErr: Label 'VAT Reclaim Status is not set for Line with Expense Category %1.', Comment = '%1 = Expense Category';
         NotApprovedForVATReclaimErr: Label 'VAT Reclaim Status is not set for Line with Expense Category %1 and Expense Subcategory %2.', Comment = '%1 = Expense Category, %2 = Expense Subcategory';
+        ShowItLbl: Label 'Show it';
 
     internal procedure RunWithCheck(var ExpenseReportHeader: Record "Expense Report Header")
     var
@@ -244,10 +246,25 @@ codeunit 6987 "Expense Report-Post"
         if ExpenseReportLineVATSpec.FindSet() then
             repeat
                 if ExpenseReportLineVATSpec."Reclaim Status" = ExpenseReportLineVATSpec."Reclaim Status"::"Pending" then
-                    Error(NotApprovedForVATReclaimErr, ExpenseReportLineVATSpec."Expense Category", ExpenseReportLineVATSpec."Expense Subcategory");
+                    Error(GetPendingVATSpecErrorInfo(ExpenseReportLineVATSpec));
             until ExpenseReportLineVATSpec.Next() = 0;
     end;
 
+    local procedure GetPendingVATSpecErrorInfo(ExpenseReportLineVATSpec: Record "Expense Report Line VAT Spec."): ErrorInfo
+    var
+        PendingVATSpecErrorInfo: ErrorInfo;
+    begin
+        if ExpenseReportLineVATSpec."Expense Subcategory" = '' then
+            PendingVATSpecErrorInfo.Message := StrSubstNo(NotApprovedForVATReclaimCategoryErr, ExpenseReportLineVATSpec."Expense Category")
+        else
+            PendingVATSpecErrorInfo.Message := StrSubstNo(NotApprovedForVATReclaimErr, ExpenseReportLineVATSpec."Expense Category", ExpenseReportLineVATSpec."Expense Subcategory");
+        PendingVATSpecErrorInfo.RecordId := ExpenseReportLineVATSpec.RecordId;
+        PendingVATSpecErrorInfo.FieldNo := ExpenseReportLineVATSpec.FieldNo("Reclaim Status");
+        PendingVATSpecErrorInfo.PageNo := Page::"Expense Report Line VAT Spec.";
+        PendingVATSpecErrorInfo.AddNavigationAction(ShowItLbl);
+        exit(PendingVATSpecErrorInfo);
+    end;
+
     local procedure CheckMandatoryFields(var ExpenseReportLine: Record "Expense Report Line")
     var
         ExpenseCategory: Record "Expense Category";
@@ -428,7 +445,7 @@ codeunit 6987 "Expense Report-Post"
             exit;
 
         if ExpenseReportLine.Refundable then
-            PostCompanyPaidExpenseJournal(ExpenseReportHeader, ExpenseReportLine, PostedExpReportLine, RefundableAmountLCY);
+            PostCompanyPaidExpenseJournal(ExpenseReportHeader, ExpenseReportLine, PostedExpReportLine, RefundableAmount, RefundableAmountLCY);
 
         if ExpenseReportLine."Reimbursable Amount (LCY)" < 0 then
             PostNonRefundableJnlLine(ExpenseReportHeader, ExpenseReportLine, PostedExpReportLine);
@@ -471,10 +488,11 @@ codeunit 6987 "Expense Report-Post"
         RefundableAmount := GenJournalLine.Amount + GenJournalLine."VAT Amount";
         RefundableAmountLCY := GenJournalLine."Amount (LCY)" + GenJournalLine."VAT Amount (LCY)";
 
-        if ShouldConsiderPostingRoundingDifference(PostedExpenseReportHeader."Reimbursement Currency Code", ExpenseReportLine."Expense Currency Code") then
-            if ExpenseReportLine."Reimbursement Type" = ExpenseReportLine."Reimbursement Type"::"Employee Paid" then
-                if Abs(RefundableAmountLCY) <> Abs(ExpenseReportLine."Reimbursable Amount (LCY)") then
-                    PostRoundingDifferenceOnCurrency(GenJournalLine, ExpenseReportLine, ExpenseReportLine."Reimbursable Amount (LCY)" - RefundableAmountLCY);
+        if ExpenseReportLine."Reimbursement Type" = ExpenseReportLine."Reimbursement Type"::"Employee Paid" then
+            PostRoundingDifferenceOnCurrency(
+                ExpenseReportHeader, ExpenseReportLine,
+                ExpenseReportLine."Reimbursable Amount" - RefundableAmount,
+                ExpenseReportLine."Reimbursable Amount (LCY)" - RefundableAmountLCY);
     end;
 
     local procedure PostRefundableJnlLineFromSpecs(ExpenseReportHeader: Record "Expense Report Header"; ExpenseReportLine: Record "Expense Report Line"; PostedExpReportLine: Record "Posted Expense Report Line"; var ExpenseReportLineVATSpec: Record "Expense Report Line VAT Spec."; var RefundableAmount: Decimal; var RefundableAmountLCY: Decimal)
@@ -507,7 +525,7 @@ codeunit 6987 "Expense Report-Post"
             GenJnlPostLine.RunWithCheck(GenJournalLine);
 
             // Accumulate gross (base + VAT) from the spec row for rounding/balance checks.
-            RefundableAmount += ExpenseReportLineVATSpec."VAT Base Amount" + ExpenseReportLineVATSpec."VAT Amount";
+            RefundableAmount += ExpenseReportLineVATSpec."VAT Base Amount (RCY)" + ExpenseReportLineVATSpec."VAT Amount (RCY)";
             RefundableAmountLCY += ExpenseReportLineVATSpec."VAT Base Amount (LCY)" + ExpenseReportLineVATSpec."VAT Amount (LCY)";
         until ExpenseReportLineVATSpec.Next() = 0;
 
@@ -517,13 +535,14 @@ codeunit 6987 "Expense Report-Post"
             AmountToEmployeeLCY += ExpenseReportLine."Reimbursable Amount (LCY)";
         end;
 
-        if ShouldConsiderPostingRoundingDifference(PostedExpenseReportHeader."Reimbursement Currency Code", ExpenseReportLine."Expense Currency Code") then
-            if ExpenseReportLine."Reimbursement Type" = ExpenseReportLine."Reimbursement Type"::"Employee Paid" then
-                if Abs(RefundableAmountLCY) <> Abs(ExpenseReportLine."Reimbursable Amount (LCY)") then
-                    PostRoundingDifferenceOnCurrency(GenJournalLine, ExpenseReportLine, ExpenseReportLine."Reimbursable Amount (LCY)" - RefundableAmountLCY);
+        if ExpenseReportLine."Reimbursement Type" = ExpenseReportLine."Reimbursement Type"::"Employee Paid" then
+            PostRoundingDifferenceOnCurrency(
+                ExpenseReportHeader, ExpenseReportLine,
+                ExpenseReportLine."Reimbursable Amount" - RefundableAmount,
+                ExpenseReportLine."Reimbursable Amount (LCY)" - RefundableAmountLCY);
     end;
 
-    local procedure PostCompanyPaidExpenseJournal(ExpenseReportHeader: Record "Expense Report Header"; ExpenseReportLine: Record "Expense Report Line"; PostedExpReportLine: Record "Posted Expense Report Line"; RefundableAmountLCY: Decimal)
+    local procedure PostCompanyPaidExpenseJournal(ExpenseReportHeader: Record "Expense Report Header"; ExpenseReportLine: Record "Expense Report Line"; PostedExpReportLine: Record "Posted Expense Report Line"; RefundableAmount: Decimal; RefundableAmountLCY: Decimal)
     var
         GenJournalLine: Record "Gen. Journal Line";
     begin
@@ -533,15 +552,17 @@ codeunit 6987 "Expense Report-Post"
 
         GenJnlPostLine.RunWithCheck(GenJournalLine);
 
-        if ShouldConsiderPostingRoundingDifference(PostedExpenseReportHeader."Reimbursement Currency Code", ExpenseReportLine."Expense Currency Code") then
-            if Abs(RefundableAmountLCY) <> Abs(GenJournalLine."Amount (LCY)") then
-                PostRoundingDifferenceOnCurrency(GenJournalLine, ExpenseReportLine, Abs(GenJournalLine."Amount (LCY)") - RefundableAmountLCY);
+        PostRoundingDifferenceOnCurrency(
+            ExpenseReportHeader, ExpenseReportLine,
+            Abs(GenJournalLine.Amount) - RefundableAmount,
+            Abs(GenJournalLine."Amount (LCY)") - RefundableAmountLCY);
     end;
 
     local procedure PostNonRefundableJnlLine(ExpenseReportHeader: Record "Expense Report Header"; ExpenseReportLine: Record "Expense Report Line"; PostedExpReportLine: Record "Posted Expense Report Line")
     var
         GenJournalLine: Record "Gen. Journal Line";
         ExpenseReportLineVATSpec: Record "Expense Report Line VAT Spec.";
+        RefundableAmount: Decimal;
         RefundableLCY: Decimal;
     begin
         ExpenseReportLineVATSpec.SetRange("Document No.", ExpenseReportLine."Document No.");
@@ -560,16 +581,20 @@ codeunit 6987 "Expense Report-Post"
 
         GenJnlPostLine.RunWithCheck(GenJournalLine);
 
+        RefundableAmount := GenJournalLine.Amount + GenJournalLine."VAT Amount";
         RefundableLCY := GenJournalLine."Amount (LCY)" + GenJournalLine."VAT Amount (LCY)";
-        if ShouldConsiderPostingRoundingDifference(PostedExpenseReportHeader."Reimbursement Currency Code", ExpenseReportLine."Expense Currency Code") then
-            if Abs(ExpenseReportLine."Reimbursable Amount (LCY)") <> Abs(RefundableLCY) then
-                PostRoundingDifferenceOnCurrency(GenJournalLine, ExpenseReportLine, ExpenseReportLine."Reimbursable Amount (LCY)" - RefundableLCY);
+        PostRoundingDifferenceOnCurrency(
+            ExpenseReportHeader, ExpenseReportLine,
+            ExpenseReportLine."Reimbursable Amount" - RefundableAmount,
+            ExpenseReportLine."Reimbursable Amount (LCY)" - RefundableLCY);
     end;
 
     local procedure PostNonRefundableJnlLineFromSpecs(ExpenseReportHeader: Record "Expense Report Header"; ExpenseReportLine: Record "Expense Report Line"; var ExpenseReportLineVATSpec: Record "Expense Report Line VAT Spec.")
     var
         GenJournalLine: Record "Gen. Journal Line";
         GlobalEntryCopied: Boolean;
+        PostedAmount: Decimal;
+        PostedAmountLCY: Decimal;
     begin
         // Each spec row produces its own Gen. Journal Line and VAT Entry.
         // Amounts are taken directly from the spec — no proportional splitting.
@@ -586,11 +611,17 @@ codeunit 6987 "Expense Report-Post"
             end;
 
             GenJnlPostLine.RunWithCheck(GenJournalLine);
+            PostedAmount += ExpenseReportLineVATSpec."VAT Base Amount (RCY)" + ExpenseReportLineVATSpec."VAT Amount (RCY)";
+            PostedAmountLCY += ExpenseReportLineVATSpec."VAT Base Amount (LCY)" + ExpenseReportLineVATSpec."VAT Amount (LCY)";
         until ExpenseReportLineVATSpec.Next() = 0;
 
         // Accumulate employee reimbursement amount once per line.
         AmountToEmployee += ExpenseReportLine."Reimbursable Amount";
         AmountToEmployeeLCY += ExpenseReportLine."Reimbursable Amount (LCY)";
+        PostRoundingDifferenceOnCurrency(
+            ExpenseReportHeader, ExpenseReportLine,
+            ExpenseReportLine."Reimbursable Amount" - PostedAmount,
+            ExpenseReportLine."Reimbursable Amount (LCY)" - PostedAmountLCY);
     end;
 
     local procedure SetupNonRefundableAccountForSpec(var GenJournalLine: Record "Gen. Journal Line"; ExpenseReportLine: Record "Expense Report Line"; ExpenseReportLineVATSpec: Record "Expense Report Line VAT Spec.")
@@ -609,11 +640,6 @@ codeunit 6987 "Expense Report-Post"
         GenJournalLine."Account No." := ExpensePostingGroup."Non-Refundable Debit Account";
     end;
 
-    local procedure ShouldConsiderPostingRoundingDifference(ReimbursementCurrencyCode: Code[10]; ExpenseCurrencyCode: Code[10]): Boolean
-    begin
-        exit((ReimbursementCurrencyCode = '') and (ExpenseCurrencyCode <> ''));
-    end;
-
     local procedure PostProjectJnlLine(PostedExpReportLine: Record "Posted Expense Report Line"; PostedExpReportHeader: Record "Posted Expense Report Header"; GenJournalLine: Record "Gen. Journal Line"): Integer
     var
         ProjectJournalLine: Record "Job Journal Line";
@@ -700,19 +726,6 @@ codeunit 6987 "Expense Report-Post"
             GenJournalLine.Validate("Gen. Posting Type", GenJournalLine."Gen. Posting Type"::Purchase);
     end;
 
-    local procedure ClearVATInformationOnGenJnlLine(var GenJournalLine: Record "Gen. Journal Line")
-    begin
-        GenJournalLine."Bill-to/Pay-to No." := '';
-        GenJournalLine."VAT Registration No." := '';
-        GenJournalLine."VAT Posting" := GenJournalLine."VAT Posting"::"Automatic VAT Entry";
-        GenJournalLine."VAT %" := 0;
-        GenJournalLine."VAT Amount" := 0;
-        GenJournalLine."VAT Amount (LCY)" := 0;
-        GenJournalLine.Validate("VAT Prod. Posting Group", '');
-        GenJournalLine.Validate("VAT Bus. Posting Group", '');
-        GenJournalLine."Gen. Posting Type" := GenJournalLine."Gen. Posting Type"::" ";
-    end;
-
     local procedure CreateGenJournalLine(var GenJournalLine: Record "Gen. Journal Line"; ExpenseReportHeader: Record "Expense Report Header"; PostedExpReportLine: Record "Posted Expense Report Line")
     begin
         GenJournalLine.Init();
@@ -740,7 +753,6 @@ codeunit 6987 "Expense Report-Post"
         GenJournalLine.Validate("Document Type", GenJournalLine."Document Type"::Invoice);
         GenJournalLine.Validate("Document No.", PostedExpReportLine."Document No.");
         GenJournalLine.Validate("Expense User No.", ExpenseReportHeader."Expense User No.");
-        GenJournalLine.Validate(Description, ExpenseReportLine.UpdatePostingDescription());
         GenJournalLine.Validate("Keep Description", true);
 
         // Use spec-level expense category/subcategory when present; fall back to parent line.
@@ -751,36 +763,44 @@ codeunit 6987 "Expense Report-Post"
             GenJournalLine.Validate("Expense Category", ExpenseReportLine."Expense Category");
             GenJournalLine.Validate("Expense Subcategory Code", ExpenseReportLine."Expense Subcategory Code");
         end;
+        GenJournalLine.Validate(
+            Description,
+            ExpenseReportLine.UpdatePostingDescription(GenJournalLine."Expense Category", GenJournalLine."Expense Subcategory Code"));
+
+        GenJournalLine.Validate("Currency Code", ExpenseReportHeader."Reimbursement Currency Code");
+        GenJournalLine.Validate("Source Currency Code", ExpenseReportHeader."Reimbursement Currency Code");
+        GenJournalLine."Currency Factor" := ExpenseReportHeader."Reimbursement Currency Factor";
 
-        // Amounts come directly from the spec row — base (net) + VAT as captured on the receipt.
+        // Amounts come directly from the spec row in reimbursement currency and LCY.
         GenJournalLine."Gen. Posting Type" := GenJournalLine."Gen. Posting Type"::Purchase;
-        GenJournalLine."Currency Code" := ExpenseReportLine."Expense Currency Code";
-        GenJournalLine."Currency Factor" := ExpenseReportLine."Expense Currency Factor";
-        GenJournalLine.Amount := ExpenseReportLineVATSpec."VAT Base Amount";
+        GenJournalLine.Amount := ExpenseReportLineVATSpec."VAT Base Amount (RCY)";
         GenJournalLine."Amount (LCY)" := ExpenseReportLineVATSpec."VAT Base Amount (LCY)";
+        GenJournalLine."Source Currency Amount" := GenJournalLine.Amount;
 
         if ExpenseReportLineVATSpec."Reclaim Status" = ExpenseReportLineVATSpec."Reclaim Status"::"Approved" then begin
             GenJournalLine."VAT Bus. Posting Group" := ExpenseReportLineVATSpec."VAT Bus. Posting Group";
             GenJournalLine."VAT Prod. Posting Group" := ExpenseReportLineVATSpec."VAT Prod. Posting Group";
             GenJournalLine."VAT Posting" := GenJournalLine."VAT Posting"::"Manual VAT Entry";
             GenJournalLine."VAT Calculation Type" := ExpenseReportLine."VAT Calculation Type";
-            GenJournalLine."VAT Base Amount" := ExpenseReportLineVATSpec."VAT Base Amount";
+            GenJournalLine."VAT %" := ExpenseReportLineVATSpec."VAT %";
+            GenJournalLine."VAT Base Amount" := ExpenseReportLineVATSpec."VAT Base Amount (RCY)";
             GenJournalLine."VAT Base Amount (LCY)" := ExpenseReportLineVATSpec."VAT Base Amount (LCY)";
-            GenJournalLine."VAT Amount" := ExpenseReportLineVATSpec."VAT Amount";
+            GenJournalLine."VAT Amount" := ExpenseReportLineVATSpec."VAT Amount (RCY)";
             GenJournalLine."VAT Amount (LCY)" := ExpenseReportLineVATSpec."VAT Amount (LCY)";
-            GenJournalLine."VAT %" := ExpenseReportLineVATSpec."VAT %";
+            GenJournalLine."Source Curr. VAT Base Amount" := ExpenseReportLineVATSpec."VAT Base Amount (RCY)";
+            GenJournalLine."Source Curr. VAT Amount" := ExpenseReportLineVATSpec."VAT Amount (RCY)";
 
             // VAT Reclaim % is used to route the non-deductible portion of VAT to the correct accounts via VAT Posting Setup.
-            if (ExpenseReportLineVATSpec."Reclaim %" <> 100) and (ExpenseReportLineVATSpec."VAT Amount" <> 0) then begin
+            if (ExpenseReportLineVATSpec."Reclaim %" <> 100) and (ExpenseReportLineVATSpec."VAT Amount (LCY)" <> 0) then begin
                 VATSetup.Get();
                 VATSetup.TestField("Non-Deductible VAT Is Enabled");
                 GenJournalLine.Validate("Non-Deductible VAT %", 100 - ExpenseReportLineVATSpec."Reclaim %");
             end;
         end else begin
             // VAT is not reclaimable: include VAT in the expense amount (gross) and do not create a VAT entry.
-            GenJournalLine.Amount := ExpenseReportLineVATSpec."VAT Base Amount" + ExpenseReportLineVATSpec."VAT Amount";
+            GenJournalLine.Amount := ExpenseReportLineVATSpec."VAT Base Amount (RCY)" + ExpenseReportLineVATSpec."VAT Amount (RCY)";
             GenJournalLine."Amount (LCY)" := ExpenseReportLineVATSpec."VAT Base Amount (LCY)" + ExpenseReportLineVATSpec."VAT Amount (LCY)";
-
+            GenJournalLine."Source Currency Amount" := GenJournalLine.Amount;
             GenJournalLine."VAT Posting" := GenJournalLine."VAT Posting"::"Automatic VAT Entry";
             GenJournalLine."VAT %" := 0;
             GenJournalLine."VAT Amount" := 0;
@@ -991,15 +1011,23 @@ codeunit 6987 "Expense Report-Post"
                     ReimbursementCurrency."Amount Rounding Precision");
     end;
 
-    local procedure PostRoundingDifferenceOnCurrency(GenJournalLine: Record "Gen. Journal Line"; ExpenseReportLine: Record "Expense Report Line"; AmountToPost: Decimal)
+    local procedure PostRoundingDifferenceOnCurrency(ExpenseReportHeader: Record "Expense Report Header"; ExpenseReportLine: Record "Expense Report Line"; AmountToPost: Decimal; AmountToPostLCY: Decimal)
     var
         ExpenseCategory: Record "Expense Category";
         ExpensePostingGroup: Record "Expense Posting Group";
+        GenJournalLine: Record "Gen. Journal Line";
         AccNo: Code[20];
+        AmountForAccountSelection: Decimal;
     begin
+        if (AmountToPost = 0) and (AmountToPostLCY = 0) then
+            exit;
+
         ExpenseCategory.Get(ExpenseReportLine."Expense Category");
         ExpensePostingGroup.Get(ExpenseCategory."Posting Group");
-        if AmountToPost > 0 then begin
+        AmountForAccountSelection := AmountToPostLCY;
+        if AmountForAccountSelection = 0 then
+            AmountForAccountSelection := AmountToPost;
+        if AmountForAccountSelection > 0 then begin
             ExpensePostingGroup.TestField("Debit Rounding Account");
             AccNo := ExpensePostingGroup."Debit Rounding Account";
         end else begin
@@ -1007,13 +1035,25 @@ codeunit 6987 "Expense Report-Post"
             AccNo := ExpensePostingGroup."Credit Rounding Account";
         end;
 
-        GenJournalLine."Account Type" := GenJournalLine."Account Type"::"G/L Account";
+        GenJournalLine.Init();
+        GenJournalLine.Validate("Posting Date", ExpenseReportHeader."Posting Date");
+        GenJournalLine.Validate("Document Type", GenJournalLine."Document Type"::Invoice);
+        GenJournalLine.Validate("Document No.", PostedExpenseReportHeader."No.");
+        GenJournalLine.Validate("Expense User No.", ExpenseReportHeader."Expense User No.");
+        GenJournalLine.Validate("Expense Category", ExpenseReportLine."Expense Category");
+        GenJournalLine.Validate("Expense Subcategory Code", ExpenseReportLine."Expense Subcategory Code");
+        GenJournalLine.Validate(Description, ExpenseReportLine.UpdatePostingDescription());
+        GenJournalLine.Validate("Keep Description", true);
+        GenJournalLine.Validate("Currency Code", ExpenseReportHeader."Reimbursement Currency Code");
+        GenJournalLine.Validate("Source Currency Code", ExpenseReportHeader."Reimbursement Currency Code");
+        GenJournalLine."Currency Factor" := ExpenseReportHeader."Reimbursement Currency Factor";
+        GenJournalLine.Validate("Account Type", GenJournalLine."Account Type"::"G/L Account");
         GenJournalLine."Account No." := AccNo;
         GenJournalLine.Amount := AmountToPost;
-        GenJournalLine."Amount (LCY)" := AmountToPost;
+        GenJournalLine."Amount (LCY)" := AmountToPostLCY;
         GenJournalLine."Source Currency Amount" := AmountToPost;
+        SetupSourceCodeAndDimensions(GenJournalLine, ExpenseReportLine."Dimension Set ID");
         GenJournalLine."System-Created Entry" := true;
-        ClearVATInformationOnGenJnlLine(GenJournalLine);
         GenJnlPostLine.RunWithCheck(GenJournalLine);
     end;
 
diff --git a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/UpgradeExpReportVATSpec.Codeunit.al b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/UpgradeExpReportVATSpec.Codeunit.al
new file mode 100644
index 00000000000..b24ea6e4ca4
--- /dev/null
+++ b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Codeunits/UpgradeExpReportVATSpec.Codeunit.al
@@ -0,0 +1,119 @@
+// ------------------------------------------------------------------------------------------------
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License. See License.txt in the project root for license information.
+// ------------------------------------------------------------------------------------------------
+namespace Microsoft.ExpenseAgent;
+
+using Microsoft.Finance.Currency;
+using Microsoft.Finance.GeneralLedger.Setup;
+using System.Upgrade;
+
+codeunit 7105 "Upgrade Exp. Report VAT Spec"
+{
+    Access = Internal;
+    Subtype = Upgrade;
+    InherentEntitlements = X;
+    InherentPermissions = X;
+    Permissions = tabledata Currency = r,
+                  tabledata "Currency Exchange Rate" = r,
+                  tabledata "Expense Report Header" = r,
+                  tabledata "Expense Report Line VAT Spec." = rm,
+                  tabledata "General Ledger Setup" = r,
+                  tabledata "Posted Expense Report Header" = r,
+                  tabledata "Posted Exp. Rep. Line VAT Spec" = rm;
+
+    trigger OnUpgradePerCompany()
+    begin
+        BackfillReimbursementAmounts();
+    end;
+
+    local procedure BackfillReimbursementAmounts()
+    var
+        UpgradeTag: Codeunit "Upgrade Tag";
+    begin
+        if UpgradeTag.HasUpgradeTag(GetBackfillReimbursementAmountsUpgradeTag()) then
+            exit;
+
+        BackfillExpenseReportLineVATSpecs();
+        BackfillPostedExpenseReportLineVATSpecs();
+
+        UpgradeTag.SetUpgradeTag(GetBackfillReimbursementAmountsUpgradeTag());
+    end;
+
+    local procedure BackfillExpenseReportLineVATSpecs()
+    var
+        ExpenseReportHeader: Record "Expense Report Header";
+        ExpenseReportLineVATSpec: Record "Expense Report Line VAT Spec.";
+    begin
+        if not ExpenseReportLineVATSpec.FindSet(true) then
+            exit;
+
+        repeat
+            if ExpenseReportHeader.Get(ExpenseReportLineVATSpec."Document No.") then begin
+                ExpenseReportLineVATSpec.UpdateReimbursementAmounts(ExpenseReportHeader);
+                ExpenseReportLineVATSpec.Modify(false);
+            end;
+        until ExpenseReportLineVATSpec.Next() = 0;
+    end;
+
+    local procedure BackfillPostedExpenseReportLineVATSpecs()
+    var
+        PostedExpenseReportHeader: Record "Posted Expense Report Header";
+        PostedExpenseReportLineVATSpec: Record "Posted Exp. Rep. Line VAT Spec";
+    begin
+        if not PostedExpenseReportLineVATSpec.FindSet(true) then
+            exit;
+
+        repeat
+            if PostedExpenseReportHeader.Get(PostedExpenseReportLineVATSpec."Expense Report No.") then begin
+                UpdatePostedReimbursementAmounts(PostedExpenseReportLineVATSpec, PostedExpenseReportHeader);
+                PostedExpenseReportLineVATSpec.Modify(false);
+            end;
+        until PostedExpenseReportLineVATSpec.Next() = 0;
+    end;
+
+    local procedure UpdatePostedReimbursementAmounts(var PostedExpenseReportLineVATSpec: Record "Posted Exp. Rep. Line VAT Spec"; PostedExpenseReportHeader: Record "Posted Expense Report Header")
+    var
+        CurrencyExchangeRate: Record "Currency Exchange Rate";
+        ReimbursementCurrency: Record Currency;
+    begin
+        ReimbursementCurrency.Initialize(PostedExpenseReportHeader."Reimbursement Currency Code");
+
+        if PostedExpenseReportHeader."Reimbursement Currency Code" = '' then begin
+            PostedExpenseReportLineVATSpec."VAT Base Amount (RCY)" := PostedExpenseReportLineVATSpec."VAT Base Amount (LCY)";
+            PostedExpenseReportLineVATSpec."VAT Amount (RCY)" := PostedExpenseReportLineVATSpec."VAT Amount (LCY)";
+            PostedExpenseReportLineVATSpec."Amount (RCY)" := PostedExpenseReportLineVATSpec."Amount (LCY)";
+        end else begin
+            PostedExpenseReportLineVATSpec."VAT Base Amount (RCY)" :=
+                Round(
+                    CurrencyExchangeRate.ExchangeAmtLCYToFCY(
+                        PostedExpenseReportHeader."Posting Date", PostedExpenseReportHeader."Reimbursement Currency Code",
+                        PostedExpenseReportLineVATSpec."VAT Base Amount (LCY)", PostedExpenseReportHeader."Reimbursement Currency Factor"),
+                    ReimbursementCurrency."Amount Rounding Precision");
+            PostedExpenseReportLineVATSpec."VAT Amount (RCY)" :=
+                Round(
+                    CurrencyExchangeRate.ExchangeAmtLCYToFCY(
+                        PostedExpenseReportHeader."Posting Date", PostedExpenseReportHeader."Reimbursement Currency Code",
+                        PostedExpenseReportLineVATSpec."VAT Amount (LCY)", PostedExpenseReportHeader."Reimbursement Currency Factor"),
+                    ReimbursementCurrency."Amount Rounding Precision");
+            PostedExpenseReportLineVATSpec."Amount (RCY)" :=
+                PostedExpenseReportLineVATSpec."VAT Base Amount (RCY)" + PostedExpenseReportLineVATSpec."VAT Amount (RCY)";
+        end;
+
+        PostedExpenseReportLineVATSpec."Reclaim VAT Amount (RCY)" :=
+            Round(
+                PostedExpenseReportLineVATSpec."VAT Amount (RCY)" * PostedExpenseReportLineVATSpec."Reclaim %" / 100,
+                ReimbursementCurrency."Amount Rounding Precision");
+    end;
+
+    [EventSubscriber(ObjectType::Codeunit, Codeunit::"Upgrade Tag", OnGetPerCompanyUpgradeTags, '', false, false)]
+    local procedure RegisterPerCompanyUpgradeTags(var PerCompanyUpgradeTags: List of [Code[250]])
+    begin
+        PerCompanyUpgradeTags.Add(GetBackfillReimbursementAmountsUpgradeTag());
+    end;
+
+    local procedure GetBackfillReimbursementAmountsUpgradeTag(): Code[250]
+    begin
+        exit('MS-ExpenseAgent-BackfillVATSpecReimbursementAmounts-20260818');
+    end;
+}
diff --git a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/ExpenseReport.Page.al b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/ExpenseReport.Page.al
index a12d79258f7..9d0e260e8da 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/ExpenseReport.Page.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/ExpenseReport.Page.al
@@ -468,6 +468,7 @@ page 6910 "Expense Report"
                         CurrPage.SaveRecord();
                     end;
                 }
+#if not CLEAN29
                 action(VATSpecification)
                 {
                     ApplicationArea = Basic, Suite;
@@ -476,8 +477,12 @@ page 6910 "Expense Report"
                     RunObject = Page "Expense Report Line VAT Spec.";
                     RunPageLink = "Document No." = field("No."), "Document Line No." = const(0);
                     ToolTip = 'View the VAT details for the record.';
-                    Visible = (Rec."No." <> '') and AllowVATReclaim;
+                    Visible = false;
+                    ObsoleteReason = 'Replaced by Expense Report Statistics';
+                    ObsoleteState = Pending;
+                    ObsoleteTag = '29.0';
                 }
+#endif
                 action("Spend Request")
                 {
                     ApplicationArea = Basic, Suite;
@@ -627,9 +632,14 @@ page 6910 "Expense Report"
                 actionref(dimension_Promoted; Dimensions)
                 {
                 }
+#if not CLEAN29
                 actionref(VATSpecification_Promoted; VATSpecification)
                 {
+                    ObsoleteReason = 'Replaced by Expense Report Statistics';
+                    ObsoleteState = Pending;
+                    ObsoleteTag = '29.0';
                 }
+#endif
                 actionref("Spend Request_Promoted"; "Spend Request")
                 {
                 }
@@ -691,7 +701,6 @@ page 6910 "Expense Report"
         DocNoVisible: Boolean;
         ExpenseUserNo: Code[20];
         ApproverComment: Text;
-        AllowVATReclaim: Boolean;
         ApprovalActionsEnabled: Boolean;
 
     protected var
@@ -708,9 +717,6 @@ page 6910 "Expense Report"
         ReopenSubmittedEnabled := ExpenseReportApprovalMgt.CanPerformApprovalAction(Rec, RefActionType::"Reopen Submitted");
         ApproveEnabled := ExpenseReportApprovalMgt.CanPerformApprovalAction(Rec, RefActionType::Approve);
         ReopenApprovedEnabled := ExpenseReportApprovalMgt.CanPerformApprovalAction(Rec, RefActionType::"Reopen Approved");
-
-        ExpenseAgentSetup.GetRecordOnce();
-        AllowVATReclaim := ExpenseAgentSetup."Allow VAT Reclaim";
         ApprovalActionsEnabled := ExpenseAgentSetup."Enable Agent" and ApproveEnabled and (Rec."Approver Expense User ID" = UserId());
     end;
 
diff --git a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/ExpenseReportLineVATSpec.Page.al b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/ExpenseReportLineVATSpec.Page.al
index 5a2b365e1bf..36f38cb312f 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/ExpenseReportLineVATSpec.Page.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/ExpenseReportLineVATSpec.Page.al
@@ -45,17 +45,22 @@ page 7081 "Expense Report Line VAT Spec."
                 field("VAT %"; Rec."VAT %")
                 {
                     Caption = 'VAT %';
-                    Editable = false;
+                }
+                field(Amount; Rec.Amount)
+                {
+                    Caption = 'Amount';
                 }
                 field("VAT Base Amount"; Rec."VAT Base Amount")
                 {
                     Caption = 'VAT Base Amount';
-                    Editable = false;
                 }
                 field("VAT Amount"; Rec."VAT Amount")
                 {
                     Caption = 'VAT Amount';
-                    Editable = false;
+                }
+                field("Amount (LCY)"; Rec."Amount (LCY)")
+                {
+                    Caption = 'Amount (LCY)';
                 }
                 field("VAT Base Amount (LCY)"; Rec."VAT Base Amount (LCY)")
                 {
@@ -67,6 +72,21 @@ page 7081 "Expense Report Line VAT Spec."
                     Caption = 'VAT Amount (LCY)';
                     Editable = false;
                 }
+                field("Amount (RCY)"; Rec."Amount (RCY)")
+                {
+                    Caption = 'Amount (RCY)';
+                    Editable = false;
+                }
+                field("VAT Base Amount (RCY)"; Rec."VAT Base Amount (RCY)")
+                {
+                    Caption = 'VAT Base Amount (RCY)';
+                    Editable = false;
+                }
+                field("VAT Amount (RCY)"; Rec."VAT Amount (RCY)")
+                {
+                    Caption = 'VAT Amount (RCY)';
+                    Editable = false;
+                }
                 field(Reclaimable; Rec.Reclaimable)
                 {
                     Caption = 'Reclaimable';
@@ -85,6 +105,11 @@ page 7081 "Expense Report Line VAT Spec."
                     Caption = 'Reclaim VAT Amount (LCY)';
                     Editable = false;
                 }
+                field("Reclaim VAT Amount (RCY)"; Rec."Reclaim VAT Amount (RCY)")
+                {
+                    Caption = 'Reclaim VAT Amount (RCY)';
+                    Editable = false;
+                }
                 field("Reclaim Reason"; Rec."Reclaim Reason")
                 {
                     Caption = 'Reclaim Reason';
@@ -154,6 +179,28 @@ page 7081 "Expense Report Line VAT Spec."
                         CurrPage.Update(false);
                     end;
                 }
+                action(ApproveAllReclaims)
+                {
+                    ApplicationArea = Basic, Suite;
+                    Caption = 'Approve All Reclaims';
+                    Image = Approve;
+                    ToolTip = 'Approve all VAT reclaims for the selected expense report line.';
+
+                    trigger OnAction()
+                    var
+                        ExpenseReportLineVATSpec: Record "Expense Report Line VAT Spec.";
+                    begin
+                        ExpenseReportLineVATSpec.SetRange("Document No.", Rec."Document No.");
+                        ExpenseReportLineVATSpec.SetRange("Document Line No.", Rec."Document Line No.");
+                        ExpenseReportLineVATSpec.SetRange("Reclaim Status", ExpenseReportLineVATSpec."Reclaim Status"::Pending);
+                        if ExpenseReportLineVATSpec.FindSet() then
+                            repeat
+                                ExpenseReportLineVATSpec.Validate("Reclaim Status", Rec."Reclaim Status"::Approved);
+                                ExpenseReportLineVATSpec.Modify(true);
+                            until ExpenseReportLineVATSpec.Next() = 0;
+                        CurrPage.Update(false);
+                    end;
+                }
                 action(RejectReclaim)
                 {
                     ApplicationArea = Basic, Suite;
@@ -178,6 +225,9 @@ page 7081 "Expense Report Line VAT Spec."
                 actionref(ApproveReclaim_Promoted; ApproveReclaim)
                 {
                 }
+                actionref(ApproveAllReclaims_Promoted; ApproveAllReclaims)
+                {
+                }
                 actionref(RejectReclaim_Promoted; RejectReclaim)
                 {
                 }
diff --git a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/ExpenseReportVATSpec.Page.al b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/ExpenseReportVATSpec.Page.al
index ef957a5658e..3b8cd3b6820 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/ExpenseReportVATSpec.Page.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/ExpenseReportVATSpec.Page.al
@@ -40,6 +40,24 @@ page 7096 "Expense Report VAT Spec."
                     Caption = 'VAT Amount';
                     ToolTip = 'Specifies the VAT amount for this rate.';
                 }
+                field("Amount (RCY)"; Rec."Amount (RCY)")
+                {
+                    Caption = 'Amount (RCY)';
+                    ToolTip = 'Specifies the total amount for this rate in reimbursement currency.';
+                    Visible = ShowRCYFields;
+                }
+                field("VAT Base Amount (RCY)"; Rec."VAT Base Amount (RCY)")
+                {
+                    Caption = 'VAT Base Amount (RCY)';
+                    ToolTip = 'Specifies the net amount this VAT rate applies to in reimbursement currency.';
+                    Visible = ShowRCYFields;
+                }
+                field("VAT Amount (RCY)"; Rec."VAT Amount (RCY)")
+                {
+                    Caption = 'VAT Amount (RCY)';
+                    ToolTip = 'Specifies the VAT amount for this rate in reimbursement currency.';
+                    Visible = ShowRCYFields;
+                }
                 field(Reclaimable; Rec.Reclaimable)
                 {
                     Caption = 'Reclaimable';
@@ -60,6 +78,12 @@ page 7096 "Expense Report VAT Spec."
                     Caption = 'Reclaim VAT Amount (LCY)';
                     ToolTip = 'Specifies the reclaimable VAT amount for this row.';
                 }
+                field("Reclaim VAT Amount (RCY)"; Rec."Reclaim VAT Amount (RCY)")
+                {
+                    Caption = 'Reclaim VAT Amount (RCY)';
+                    ToolTip = 'Specifies the reclaimable VAT amount for this row in reimbursement currency.';
+                    Visible = ShowRCYFields;
+                }
                 field("Reclaim Status"; Rec."Reclaim Status")
                 {
                     Caption = 'Reclaim Status';
@@ -68,4 +92,18 @@ page 7096 "Expense Report VAT Spec."
             }
         }
     }
+
+    trigger OnOpenPage()
+    var
+        ExpenseReportHeader: Record "Expense Report Header";
+    begin
+        if Rec.GetFilter("Document No.") = '' then
+            exit;
+
+        if ExpenseReportHeader.Get(Rec.GetRangeMin("Document No.")) then
+            ShowRCYFields := ExpenseReportHeader."Reimbursement Currency Code" <> '';
+    end;
+
+    var
+        ShowRCYFields: Boolean;
 }
diff --git a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/PostedExpenseReportVATSpec.Page.al b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/PostedExpenseReportVATSpec.Page.al
index 0d264ec3943..328c3bf2fc9 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/PostedExpenseReportVATSpec.Page.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Pages/PostedExpenseReportVATSpec.Page.al
@@ -50,6 +50,24 @@ page 7093 "Posted Expense Report VAT Spec"
                     Caption = 'VAT Amount';
                     ToolTip = 'Specifies the VAT amount for this rate.';
                 }
+                field("Amount (RCY)"; Rec."Amount (RCY)")
+                {
+                    Caption = 'Amount (RCY)';
+                    ToolTip = 'Specifies the total amount for this rate in reimbursement currency.';
+                    Visible = ShowRCYFields;
+                }
+                field("VAT Base Amount (RCY)"; Rec."VAT Base Amount (RCY)")
+                {
+                    Caption = 'VAT Base Amount (RCY)';
+                    ToolTip = 'Specifies the net amount this VAT rate applies to in reimbursement currency.';
+                    Visible = ShowRCYFields;
+                }
+                field("VAT Amount (RCY)"; Rec."VAT Amount (RCY)")
+                {
+                    Caption = 'VAT Amount (RCY)';
+                    ToolTip = 'Specifies the VAT amount for this rate in reimbursement currency.';
+                    Visible = ShowRCYFields;
+                }
                 field(Reclaimable; Rec.Reclaimable)
                 {
                     Caption = 'Reclaimable';
@@ -68,6 +86,12 @@ page 7093 "Posted Expense Report VAT Spec"
                 {
                     Caption = 'Reclaim VAT Amount (LCY)';
                 }
+                field("Reclaim VAT Amount (RCY)"; Rec."Reclaim VAT Amount (RCY)")
+                {
+                    Caption = 'Reclaim VAT Amount (RCY)';
+                    ToolTip = 'Specifies the reclaimable VAT amount for this row in reimbursement currency.';
+                    Visible = ShowRCYFields;
+                }
                 field("Reclaim Status"; Rec."Reclaim Status")
                 {
                     Caption = 'Reclaim Status';
@@ -76,4 +100,18 @@ page 7093 "Posted Expense Report VAT Spec"
             }
         }
     }
+
+    trigger OnOpenPage()
+    var
+        PostedExpenseReportHeader: Record "Posted Expense Report Header";
+    begin
+        if Rec.GetFilter("Expense Report No.") = '' then
+            exit;
+
+        if PostedExpenseReportHeader.Get(Rec.GetRangeMin("Expense Report No.")) then
+            ShowRCYFields := PostedExpenseReportHeader."Reimbursement Currency Code" <> '';
+    end;
+
+    var
+        ShowRCYFields: Boolean;
 }
diff --git a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/ExpenseReportHeader.Table.al b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/ExpenseReportHeader.Table.al
index 023e1e8810c..ce9958113fe 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/ExpenseReportHeader.Table.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/ExpenseReportHeader.Table.al
@@ -687,6 +687,23 @@ table 6906 "Expense Report Header"
                         UpdateSpendRequestOnReportLine(ExpenseReportLine);
                 end;
             until ExpenseReportLine.Next() = 0;
+
+        if CalledFromFieldName in [Rec.FieldName("Reimbursement Currency Code"), Rec.FieldName("Reimbursement Currency Factor"), Rec.FieldName("Posting Date")] then
+            UpdateVATSpecReimbursementAmounts();
+    end;
+
+    local procedure UpdateVATSpecReimbursementAmounts()
+    var
+        ExpenseReportLineVATSpec: Record "Expense Report Line VAT Spec.";
+    begin
+        ExpenseReportLineVATSpec.SetRange("Document No.", "No.");
+        if ExpenseReportLineVATSpec.FindSet() then
+            repeat
+                ExpenseReportLineVATSpec.UpdateReimbursementAmounts(Rec);
+#pragma warning disable AA0214
+                ExpenseReportLineVATSpec.Modify();
+#pragma warning restore AA0214                
+            until ExpenseReportLineVATSpec.Next() = 0;
     end;
 
     local procedure UpdateCurrFactorOnReportLine(var ExpenseReportLine: Record "Expense Report Line")
diff --git a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/ExpenseReportLine.Table.al b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/ExpenseReportLine.Table.al
index 62bacc1252e..29378b22fda 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/ExpenseReportLine.Table.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/ExpenseReportLine.Table.al
@@ -1389,14 +1389,35 @@ table 6907 "Expense Report Line"
     end;
 
     procedure UpdatePostingDescription(): Text[100]
+    begin
+        exit(UpdatePostingDescription("Expense Category", "Expense Subcategory Code"));
+    end;
+
+    internal procedure UpdatePostingDescription(ExpenseCategoryCode: Code[20]; ExpenseSubcategoryCode: Code[20]): Text[100]
     var
         ExpenseSubcategory: Record "Expense Subcategory";
-    begin
-        if "Expense Subcategory Code" <> '' then begin
-            ExpenseSubcategory.Get("Expense Category", "Expense Subcategory Code");
-            exit(CopyStr(Description + ' - ' + ExpenseSubcategory."Posting Description", 1, 100));
+        BaseDescription: Text[100];
+        PostingDescriptionSuffix: Text;
+    begin
+        BaseDescription := Description;
+        if ("Expense Subcategory Code" <> '') and
+           ExpenseSubcategory.Get("Expense Category", "Expense Subcategory Code") and
+           (ExpenseSubcategory."Posting Description" <> '')
+        then begin
+            PostingDescriptionSuffix := ' / ' + ExpenseSubcategory."Posting Description";
+#pragma warning disable AA0139
+            if BaseDescription.EndsWith(PostingDescriptionSuffix) then
+                BaseDescription := CopyStr(BaseDescription, 1, StrLen(BaseDescription) - StrLen(PostingDescriptionSuffix));
         end;
-        exit(CopyStr(Description, 1, 100));
+#pragma warning restore AA0139
+
+        if (ExpenseSubcategoryCode = '') or
+           (not ExpenseSubcategory.Get(ExpenseCategoryCode, ExpenseSubcategoryCode)) or
+           (ExpenseSubcategory."Posting Description" = '')
+        then
+            exit(BaseDescription);
+
+        exit(CopyStr(BaseDescription + ' / ' + ExpenseSubcategory."Posting Description", 1, 100));
     end;
 
     local procedure InitDefaultDimensionSources(var DefaultDimSource: List of [Dictionary of [Integer, Code[20]]]; FieldNo: Integer)
diff --git a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/ExpenseReportLineVATSpec.Table.al b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/ExpenseReportLineVATSpec.Table.al
index 5fb1d603f8f..ef02d2f2d7c 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/ExpenseReportLineVATSpec.Table.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/ExpenseReportLineVATSpec.Table.al
@@ -52,6 +52,17 @@ table 6922 "Expense Report Line VAT Spec."
             MinValue = 0;
             MaxValue = 100;
             ToolTip = 'Specifies the VAT rate.';
+
+            trigger OnValidate()
+            begin
+                InitializeCurrency();
+                "VAT Amount" := Round(Amount * "VAT %" / (100 + "VAT %"), Currency."Amount Rounding Precision", Currency.VATRoundingDirection());
+                "VAT Base Amount" := Round(Amount - "VAT Amount", Currency."Amount Rounding Precision");
+                "VAT Difference" := 0;
+                "VAT Amount (LCY)" := CalcVATAmountLCY();
+                "VAT Base Amount (LCY)" := "Amount (LCY)" - "VAT Amount (LCY)";
+                UpdateReimbursementAmounts();
+            end;
         }
         field(11; "VAT Base Amount"; Decimal)
         {
@@ -73,6 +84,11 @@ table 6922 "Expense Report Line VAT Spec."
             AutoFormatType = 1;
             Caption = 'Amount';
             ToolTip = 'Specifies the total amount (including VAT) that the expense line consists of.';
+
+            trigger OnValidate()
+            begin
+                ValidateAmount();
+            end;
         }
         /// <summary>
         /// Calculated difference between expected and actual VAT amount allowing for VAT tolerance variations.
@@ -162,12 +178,47 @@ table 6922 "Expense Report Line VAT Spec."
             Caption = 'Expense Category';
             TableRelation = "Expense Category".Code;
             ToolTip = 'Specifies the expense category associated with this VAT specification line, used to identify the type of expense for reporting and VAT reclaim purposes.';
+
+            trigger OnValidate()
+            var
+                ExpenseCategory: Record "Expense Category";
+            begin
+                if "Expense Category" = '' then
+                    exit;
+                if "Expense Subcategory" <> '' then
+                    exit;
+                if ExpenseCategory.Get("Expense Category") then begin
+                    "VAT Prod. Posting Group" := ExpenseCategory."VAT Prod. Posting Group";
+                    "VAT %" := ExpenseCategory."Default VAT %";
+                    Validate("VAT %");
+                end;
+            end;
         }
         field(28; "Expense Subcategory"; Code[20])
         {
             Caption = 'Expense Subcategory';
             TableRelation = "Expense Subcategory".Code where("Expense Category Code" = field("Expense Category"));
             ToolTip = 'Specifies the expense subcategory associated with this VAT specification line, providing a more detailed classification within the expense category.';
+
+            trigger OnValidate()
+            var
+                ExpenseCategory: Record "Expense Category";
+                ExpenseSubcategory: Record "Expense Subcategory";
+            begin
+                if "Expense Subcategory" <> '' then begin
+                    if ExpenseSubcategory.Get("Expense Category", "Expense Subcategory") then begin
+                        "VAT Prod. Posting Group" := ExpenseSubcategory."VAT Prod. Posting Group";
+                        "VAT %" := ExpenseSubcategory."Default VAT %";
+                        Validate("VAT %");
+                    end;
+                end else
+                    if "Expense Category" <> '' then
+                        if ExpenseCategory.Get("Expense Category") then begin
+                            "VAT Prod. Posting Group" := ExpenseCategory."VAT Prod. Posting Group";
+                            "VAT %" := ExpenseCategory."Default VAT %";
+                            Validate("VAT %");
+                        end;
+            end;
         }
         field(30; Reclaimable; Boolean)
         {
@@ -192,22 +243,11 @@ table 6922 "Expense Report Line VAT Spec."
             ToolTip = 'Specifies the reclaim percentage for partial deductibility.';
 
             trigger OnValidate()
-            var
-                Currency: Record Currency;
-                GLSetup: Record "General Ledger Setup";
-                CurrAmountRoundingPrecision: Decimal;
-                LCYAmountRoundingPrecision: Decimal;
             begin
                 if "Reclaim %" <> xRec."Reclaim %" then
                     "Reclaim Status" := "Reclaim Status"::"Pending";
 
-                GLSetup.Get();
-                LCYAmountRoundingPrecision := GLSetup."Amount Rounding Precision";
-                CurrAmountRoundingPrecision := LCYAmountRoundingPrecision;
-                if ("Currency Code" <> '') and Currency.Get("Currency Code") then
-                    CurrAmountRoundingPrecision := Currency."Amount Rounding Precision";
-                "Reclaim VAT Amount" := Round("VAT Amount" * "Reclaim %" / 100, CurrAmountRoundingPrecision);
-                "Reclaim VAT Amount (LCY)" := Round("VAT Amount (LCY)" * "Reclaim %" / 100, LCYAmountRoundingPrecision);
+                UpdateReclaimAmounts();
             end;
         }
         field(32; "Reclaim Reason"; Text[250])
@@ -304,6 +344,45 @@ table 6922 "Expense Report Line VAT Spec."
                 Rec."Reclaim Approved At" := CurrentDateTime();
             end;
         }
+        /// <summary>
+        /// VAT amount converted to local currency for accounting and reporting purposes.
+        /// </summary>
+        field(50; "VAT Base Amount (RCY)"; Decimal)
+        {
+            AutoFormatType = 1;
+            AutoFormatExpression = GetReimbursementCurrencyCode();
+            Caption = 'VAT Base Amount (RCY)';
+            DataClassification = CustomerContent;
+            Editable = false;
+            ToolTip = 'Specifies the VAT base amount in reimbursement currency for this rate.';
+        }
+        field(51; "VAT Amount (RCY)"; Decimal)
+        {
+            AutoFormatType = 1;
+            AutoFormatExpression = GetReimbursementCurrencyCode();
+            Caption = 'VAT Amount (RCY)';
+            DataClassification = CustomerContent;
+            Editable = false;
+            ToolTip = 'Specifies the VAT amount in reimbursement currency for this rate.';
+        }
+        field(52; "Amount (RCY)"; Decimal)
+        {
+            AutoFormatType = 1;
+            AutoFormatExpression = GetReimbursementCurrencyCode();
+            Caption = 'Amount (RCY)';
+            DataClassification = CustomerContent;
+            Editable = false;
+            ToolTip = 'Specifies the total amount in reimbursement currency for this rate.';
+        }
+        field(53; "Reclaim VAT Amount (RCY)"; Decimal)
+        {
+            AutoFormatType = 1;
+            AutoFormatExpression = GetReimbursementCurrencyCode();
+            Caption = 'Reclaim VAT Amount (RCY)';
+            DataClassification = CustomerContent;
+            Editable = false;
+            ToolTip = 'Specifies the reclaim VAT amount in reimbursement currency for this rate.';
+        }
     }
 
     keys
@@ -315,6 +394,148 @@ table 6922 "Expense Report Line VAT Spec."
         key(Reclaim; "Document No.", Reclaimable, "Reclaim Status") { }
     }
 
+    var
+        Currency: Record Currency;
+        CurrencyExchangeRate: Record "Currency Exchange Rate";
+        ExpenseReportHeader: Record "Expense Report Header";
+        ExpenseReportLine: Record "Expense Report Line";
+
+    local procedure CalcVATAmountLCY(): Decimal
+    var
+        LCYCurrency: Record Currency;
+        VATAmountLCY: Decimal;
+    begin
+        if "Currency Code" = '' then
+            exit("VAT Amount");
+
+        LCYCurrency.InitRoundingPrecision();
+        InitializeCurrency();
+
+        "VAT Difference" :=
+            "VAT Amount" -
+            Round(Amount * "VAT %" / (100 + "VAT %"), Currency."Amount Rounding Precision", Currency.VATRoundingDirection());
+
+        if "VAT Difference" = 0 then
+            VATAmountLCY := Round("Amount (LCY)" * "VAT %" / (100 + "VAT %"), LCYCurrency."Amount Rounding Precision", LCYCurrency.VATRoundingDirection())
+        else begin
+            GetExpenseReportLine();
+            VATAmountLCY :=
+                Round(
+                    CurrencyExchangeRate.ExchangeAmtFCYToLCY(ExpenseReportLine."Expense Date", "Currency Code", "VAT Amount", "Currency Factor"),
+                    LCYCurrency."Amount Rounding Precision", LCYCurrency.VATRoundingDirection());
+        end;
+
+        exit(VATAmountLCY);
+    end;
+
+    local procedure GetExpenseReportHeader()
+    begin
+        if "Document No." <> ExpenseReportHeader."No." then
+            ExpenseReportHeader.Get("Document No.");
+    end;
+
+    local procedure GetExpenseReportLine()
+    begin
+        if ("Document No." <> ExpenseReportLine."Document No.") or ("Document Line No." <> ExpenseReportLine."Line No.") then
+            ExpenseReportLine.Get("Document No.", "Document Line No.");
+    end;
+
+    local procedure GetReimbursementCurrencyCode(): Code[20]
+    begin
+        GetExpenseReportHeader();
+        exit(ExpenseReportHeader."Reimbursement Currency Code");
+    end;
+
+    local procedure InitializeCurrency()
+    begin
+        if "Currency Code" = '' then begin
+            Clear(Currency);
+            Currency.InitRoundingPrecision();
+        end else
+            if "Currency Code" <> Currency.Code then begin
+                Currency.Get("Currency Code");
+                Currency.TestField("Amount Rounding Precision");
+            end;
+    end;
+
+    local procedure UpdateReclaimAmounts()
+    begin
+        GetExpenseReportHeader();
+        UpdateReclaimAmounts(ExpenseReportHeader."Reimbursement Currency Code");
+    end;
+
+    local procedure UpdateReclaimAmounts(ReimbursementCurrencyCode: Code[10])
+    var
+        GLSetup: Record "General Ledger Setup";
+        ReimbursementCurrency: Record Currency;
+        CurrencyAmountRoundingPrecision: Decimal;
+        LCYAmountRoundingPrecision: Decimal;
+        ReimbursementAmountRoundingPrecision: Decimal;
+    begin
+        GLSetup.Get();
+        LCYAmountRoundingPrecision := GLSetup."Amount Rounding Precision";
+        CurrencyAmountRoundingPrecision := LCYAmountRoundingPrecision;
+        if ("Currency Code" <> '') and Currency.Get("Currency Code") then
+            CurrencyAmountRoundingPrecision := Currency."Amount Rounding Precision";
+
+        ReimbursementCurrency.Initialize(ReimbursementCurrencyCode);
+        ReimbursementAmountRoundingPrecision := ReimbursementCurrency."Amount Rounding Precision";
+
+        "Reclaim VAT Amount" := Round("VAT Amount" * "Reclaim %" / 100, CurrencyAmountRoundingPrecision);
+        "Reclaim VAT Amount (LCY)" := Round("VAT Amount (LCY)" * "Reclaim %" / 100, LCYAmountRoundingPrecision);
+        "Reclaim VAT Amount (RCY)" := Round("VAT Amount (RCY)" * "Reclaim %" / 100, ReimbursementAmountRoundingPrecision);
+    end;
+
+    internal procedure UpdateReimbursementAmounts()
+    begin
+        GetExpenseReportHeader();
+        UpdateReimbursementAmounts(ExpenseReportHeader);
+    end;
+
+    internal procedure UpdateReimbursementAmounts(NewExpenseReportHeader: Record "Expense Report Header")
+    var
+        ReimbursementCurrency: Record Currency;
+    begin
+        ReimbursementCurrency.Initialize(NewExpenseReportHeader."Reimbursement Currency Code");
+
+        if NewExpenseReportHeader."Reimbursement Currency Code" = '' then begin
+            "VAT Base Amount (RCY)" := "VAT Base Amount (LCY)";
+            "VAT Amount (RCY)" := "VAT Amount (LCY)";
+            "Amount (RCY)" := "Amount (LCY)";
+        end else begin
+            "VAT Base Amount (RCY)" :=
+                Round(
+                    CurrencyExchangeRate.ExchangeAmtLCYToFCY(
+                        NewExpenseReportHeader."Posting Date", NewExpenseReportHeader."Reimbursement Currency Code",
+                        "VAT Base Amount (LCY)", NewExpenseReportHeader."Reimbursement Currency Factor"),
+                    ReimbursementCurrency."Amount Rounding Precision");
+            "VAT Amount (RCY)" :=
+                Round(
+                    CurrencyExchangeRate.ExchangeAmtLCYToFCY(
+                        NewExpenseReportHeader."Posting Date", NewExpenseReportHeader."Reimbursement Currency Code",
+                        "VAT Amount (LCY)", NewExpenseReportHeader."Reimbursement Currency Factor"),
+                    ReimbursementCurrency."Amount Rounding Precision");
+            "Amount (RCY)" := "VAT Base Amount (RCY)" + "VAT Amount (RCY)";
+        end;
+
+        UpdateReclaimAmounts(NewExpenseReportHeader."Reimbursement Currency Code");
+    end;
+
+    local procedure ValidateAmount()
+    begin
+        InitializeCurrency();
+        if "Currency Code" = '' then
+            "Amount (LCY)" := Amount
+        else begin
+            GetExpenseReportLine();
+            "Amount (LCY)" := Round(
+                CurrencyExchangeRate.ExchangeAmtFCYToLCY(ExpenseReportLine."Expense Date", "Currency Code", Amount, "Currency Factor"));
+        end;
+
+        Amount := Round(Amount, Currency."Amount Rounding Precision");
+        Validate("VAT %");
+    end;
+
     /// <summary>Stores a UTF-8 reclaim justification text into the blob.</summary>
     procedure SetJustification(NewText: Text)
     var
diff --git a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/PostedExpRepLineVATSpec.Table.al b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/PostedExpRepLineVATSpec.Table.al
index bc49985be51..55105475af0 100644
--- a/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/PostedExpRepLineVATSpec.Table.al
+++ b/src/Apps/W1/ExpenseAgent/app/src/ExpenseReport/Tables/PostedExpRepLineVATSpec.Table.al
@@ -235,6 +235,42 @@ table 6934 "Posted Exp. Rep. Line VAT Spec"
             Editable = false;
             ToolTip = 'Specifies whether the VAT reclaim for this row is pending, approved, or rejected.';
         }
+        field(50; "VAT Base Amount (RCY)"; Decimal)
+        {
+            AutoFormatType = 1;
+            AutoFormatExpression = GetReimbursementCurrencyCode();
+            Caption = 'VAT Base Amount (RCY)';
+            DataClassification = CustomerContent;
+            Editable = false;
+            ToolTip = 'Specifies the VAT base amount in reimbursement currency for this rate.';
+        }
+        field(51; "VAT Amount (RCY)"; Decimal)
+        {
+            AutoFormatType = 1;
+            AutoFormatExpression = GetReimbursementCurrencyCode();
+            Caption = 'VAT Amount (RCY)';
+            DataClassification = CustomerContent;
+            Editable = false;
+            ToolTip = 'Specifies the VAT amount in reimbursement currency for this rate.';
+        }
+        field(52; "Amount (RCY)"; Decimal)
+        {
+            AutoFormatType = 1;
+            AutoFormatExpression = GetReimbursementCurrencyCode();
+            Caption = 'Amount (RCY)';
+            DataClassification = CustomerContent;
+            Editable = false;
+            ToolTip = 'Specifies the total amount in reimbursement currency for this rate.';
+        }
+        field(53; "Reclaim VAT Amount (RCY)"; Decimal)
+        {
+            AutoFormatType = 1;
+            AutoFormatExpression = GetReimbursementCurrencyCode();
+            Caption = 'Reclaim VAT Amount (RCY)';
+            DataClassification = CustomerContent;
+            Editable = false;
+            ToolTip = 'Specifies the reclaim VAT amount in reimbursement currency for this rate.';
+        }
     }
 
     keys
@@ -248,6 +284,14 @@ table 6934 "Posted Exp. Rep. Line VAT Spec"
         }
     }
 
+    local procedure GetReimbursementCurrencyCode(): Code[20]
+    var
+        PostedExpenseReportHeader: Record "Posted Expense Report Header";
+    begin
+        if PostedExpenseReportHeader.Get("Expense Report No.") then
+            exit(PostedExpenseReportHeader."Reimbursement Currency Code");
+    end;
+
     /// <summary>Stores a UTF-8 reclaim justification text into the blob.</summary>
     procedure SetJustification(NewText: Text)
     var
diff --git a/src/Apps/W1/ExpenseAgent/test/src/ExpenseNoRuleTest.Codeunit.al b/src/Apps/W1/ExpenseAgent/test/src/ExpenseNoRuleTest.Codeunit.al
index 49c49f1d273..c6fc26b8400 100644
--- a/src/Apps/W1/ExpenseAgent/test/src/ExpenseNoRuleTest.Codeunit.al
+++ b/src/Apps/W1/ExpenseAgent/test/src/ExpenseNoRuleTest.Codeunit.al
@@ -370,7 +370,7 @@ codeunit 148311 "Expense No Rule Test"
         FindExpenseReportLine(ExpenseReportLine, CopyStr(ExpenseReportPage."No.".Value(), 1, 20));
 
         // [GIVEN] Update "Merchant Name" in Expense Report Line.
-        ExpenseReportLine.Validate("Merchant Name", LibraryRandom.RandText(20));
+        ExpenseReportLine.Validate("Merchant Name", CopyStr(LibraryRandom.RandText(20), 1, 100));
         ExpenseReportLine.Modify();
 
         // [WHEN] Release Expense Report.
diff --git a/src/Apps/W1/ExpenseAgent/test/src/ExpensePostingVATTest.Codeunit.al b/src/Apps/W1/ExpenseAgent/test/src/ExpensePostingVATTest.Codeunit.al
index 4f28fd7ca42..64b8a0eee4a 100644
--- a/src/Apps/W1/ExpenseAgent/test/src/ExpensePostingVATTest.Codeunit.al
+++ b/src/Apps/W1/ExpenseAgent/test/src/ExpensePostingVATTest.Codeunit.al
@@ -5,6 +5,7 @@
 namespace Microsoft.Test.ExpenseAgent;
 
 using Microsoft.ExpenseAgent;
+using Microsoft.Finance.Currency;
 using Microsoft.Finance.GeneralLedger.Ledger;
 using Microsoft.Finance.VAT.Ledger;
 using Microsoft.Finance.VAT.Setup;
@@ -25,7 +26,12 @@ codeunit 148330 "Expense Posting VAT Test"
         LibraryTestInitialize: Codeunit "Library - Test Initialize";
         LibraryUtility: Codeunit "Library - Utility";
         IsInitialized: Boolean;
+        ExpectedExpenseNo: Code[20];
+        ExpectedExpenseReportNo: Code[20];
+        PostExpenseReportQst: Label 'Do you want to post Expense Report %1?', Comment = '%1 = Expense Report No.';
+        NotApprovedForVATReclaimCategoryErr: Label 'VAT Reclaim Status is not set for Line with Expense Category %1.', Comment = '%1 = Expense Category';
         NotApprovedForVATReclaimErr: Label 'VAT Reclaim Status is not set for Line with Expense Category %1 and Expense Subcategory %2.', Comment = '%1 = Expense Category, %2 = Expense Subcategory';
+        ModifyOrDeleteAgentVATSpecErr: Label 'Modifications and delete are not allowed for records created by the Expense Agent API.';
 
     [Test]
     [HandlerFunctions('ExpensesModalPageHandler,ConfirmHandler')]
@@ -327,13 +333,13 @@ codeunit 148330 "Expense Posting VAT Test"
 
         // [GIVEN] Expense report is created with expenses added
         LibraryExpense.CreateExpenseReport(ExpenseReportHeader, ExpenseUser."No.", '', Expense."VAT Bus. Posting Group");
-        CreateExpenseReport.AddExpensesToReport(ExpenseReportHeader);
+        AddExpensesToReport(CreateExpenseReport, ExpenseReportHeader, Expense."No.");
         UpdateExpenseReportLinesWithVendor(ExpenseReportHeader);
         UpdateExpenseReportVATSpecLineStatuses(ExpenseReportHeader);
         ExpenseReportHeader.PerformManualRelease();
 
         // [WHEN] Expense report is posted
-        ExpenseReportPost.PostExpenseReport(ExpenseReportHeader);
+        PostExpenseReportWithConfirmation(ExpenseReportPost, ExpenseReportHeader);
 
         // [THEN] Posted expense report is created
         FindPostedExpenseReport(PostedExpenseReportHeader, Expense);
@@ -389,12 +395,12 @@ codeunit 148330 "Expense Posting VAT Test"
         CreateExpenseWithHotelItemizations(Expense, ExpenseUser, ExpenseCategory, ExpenseSubCategory, VATPostingSetup, 100, 50, 0, 0);
 
         LibraryExpense.CreateExpenseReport(ExpenseReportHeader, ExpenseUser."No.", '', Expense."VAT Bus. Posting Group");
-        CreateExpenseReport.AddExpensesToReport(ExpenseReportHeader);
+        AddExpensesToReport(CreateExpenseReport, ExpenseReportHeader, Expense."No.");
         UpdateExpenseReportLinesWithVendorKeepingPending(ExpenseReportHeader);
         ExpenseReportHeader.PerformManualRelease();
 
         // [WHEN] Posting is attempted
-        asserterror ExpenseReportPost.PostExpenseReport(ExpenseReportHeader);
+        asserterror PostExpenseReportWithConfirmation(ExpenseReportPost, ExpenseReportHeader);
 
         // [THEN] A reclaim-status error is raised and posting does not create a posted report.
         Assert.ExpectedError(StrSubstNo(NotApprovedForVATReclaimErr, ExpenseCategory.Code, ExpenseSubCategory[1].Code));
@@ -402,6 +408,426 @@ codeunit 148330 "Expense Posting VAT Test"
         Assert.RecordCount(PostedExpenseReportHeader, 0);
     end;
 
+    [Test]
+    [HandlerFunctions('ExpensesModalPageHandler,ConfirmHandler')]
+    procedure VATSpecWithoutSubcategoryPendingStatusBlocksPosting()
+    var
+        Expense: Record Expense;
+        ExpenseCategory: Record "Expense Category";
+        ExpenseReportHeader: Record "Expense Report Header";
+        ExpenseSubCategory: Record "Expense Subcategory";
+        ExpenseUser: Record "Expense User";
+        PostedExpenseReportHeader: Record "Posted Expense Report Header";
+        VATPostingSetup: Record "VAT Posting Setup";
+        CreateExpenseReport: Codeunit "Create Expense Report";
+        ExpenseReportPost: Codeunit "Expense Report-Post";
+    begin
+        // [SCENARIO] Posting is blocked when a category-only VAT specification remains pending.
+        Initialize();
+
+        // [GIVEN] A non-itemized expense with a category-level VAT specification.
+        LibraryExpense.CreateExpenseUser(ExpenseUser);
+        LibraryExpense.CreateExpenseCategory(ExpenseCategory, ExpenseCategory."Reimbursement Type"::"Employee Paid", ExpenseCategory."Expense Detail Required"::" ");
+        CreateSubcategoryWithVATRate(ExpenseSubCategory, ExpenseCategory.Code, 20, VATPostingSetup);
+        ExpenseCategory.Validate("VAT Prod. Posting Group", VATPostingSetup."VAT Prod. Posting Group");
+        ExpenseCategory.Validate("Default VAT %", VATPostingSetup."VAT %");
+        ExpenseCategory.Modify(true);
+        LibraryExpense.CreateExpense(Expense, ExpenseUser."No.", ExpenseCategory.Code, '', '', true, '', 120);
+        Expense.UpdateVATSpecification(Expense."No.");
+        ReleaseExpenseAndUpdateAccounts(Expense, ExpenseUser);
+
+        LibraryExpense.CreateExpenseReport(ExpenseReportHeader, ExpenseUser."No.", '', Expense."VAT Bus. Posting Group");
+        AddExpensesToReport(CreateExpenseReport, ExpenseReportHeader, Expense."No.");
+        UpdateExpenseReportLinesWithVendorKeepingPending(ExpenseReportHeader);
+        ExpenseReportHeader.PerformManualRelease();
+
+        // [WHEN] Posting is attempted.
+        asserterror PostExpenseReportWithConfirmation(ExpenseReportPost, ExpenseReportHeader);
+
+        // [THEN] The error identifies the expense category without requiring a subcategory.
+        Assert.ExpectedError(StrSubstNo(NotApprovedForVATReclaimCategoryErr, ExpenseCategory.Code));
+        PostedExpenseReportHeader.SetRange("Expense User No.", ExpenseUser."No.");
+        Assert.RecordCount(PostedExpenseReportHeader, 0);
+    end;
+
+    [Test]
+    [HandlerFunctions('ExpensesModalPageHandler,ConfirmHandler')]
+    procedure ModifiedVATSpecIsRecalculatedAndPostedInReimbursementCurrency()
+    var
+        Currency: Record Currency;
+        CurrencyExchangeRate: Record "Currency Exchange Rate";
+        Expense: Record Expense;
+        ExpenseUser: Record "Expense User";
+        ExpenseCategory: Record "Expense Category";
+        ExpenseSubCategory: array[4] of Record "Expense Subcategory";
+        ExpenseReportHeader: Record "Expense Report Header";
+        ExpenseReportLineVATSpec: Record "Expense Report Line VAT Spec.";
+        PostedExpenseReportHeader: Record "Posted Expense Report Header";
+        PostedExpenseReportLineVATSpec: Record "Posted Exp. Rep. Line VAT Spec";
+        VATPostingSetup: array[3] of Record "VAT Posting Setup";
+        GLEntry: Record "G/L Entry";
+        CreateExpenseReport: Codeunit "Create Expense Report";
+        ExpenseReportPost: Codeunit "Expense Report-Post";
+        CurrencyCode: Code[10];
+        ExpectedVATBaseAmountRCY: Decimal;
+        ExpectedVATAmountRCY: Decimal;
+    begin
+        // [SCENARIO] A copied VAT specification can be changed and is posted in reimbursement currency.
+        Initialize();
+
+        // [GIVEN] An LCY expense for 110 with 10% VAT and an expense report in a foreign reimbursement currency.
+        CreateExpenseUserAndCategory(ExpenseUser, ExpenseCategory);
+        CreateSubcategoryWithVATRate(ExpenseSubCategory[1], ExpenseCategory.Code, 10, VATPostingSetup[1]);
+        CreateExpenseWithHotelItemizations(Expense, ExpenseUser, ExpenseCategory, ExpenseSubCategory, VATPostingSetup, 110, 0, 0, 0);
+        CurrencyCode := LibraryERM.CreateCurrencyWithExchangeRate(WorkDate(), 1, 2);
+        Currency.Get(CurrencyCode);
+
+        LibraryExpense.CreateExpenseReport(ExpenseReportHeader, ExpenseUser."No.", CurrencyCode, Expense."VAT Bus. Posting Group");
+        AddExpensesToReport(CreateExpenseReport, ExpenseReportHeader, Expense."No.");
+
+        // [WHEN] The VAT rate is changed to 20% on the copied specification.
+        ExpenseReportLineVATSpec.SetRange("Document No.", ExpenseReportHeader."No.");
+        ExpenseReportLineVATSpec.FindFirst();
+        ExpenseReportLineVATSpec.Validate("VAT %", 20);
+        ExpenseReportLineVATSpec.Modify(true);
+
+        // [THEN] Transaction, LCY, and reimbursement-currency amounts are recalculated from the gross amount.
+        ExpectedVATBaseAmountRCY :=
+            Round(
+                CurrencyExchangeRate.ExchangeAmtLCYToFCY(
+                    ExpenseReportHeader."Posting Date", CurrencyCode, ExpenseReportLineVATSpec."VAT Base Amount (LCY)",
+                    ExpenseReportHeader."Reimbursement Currency Factor"),
+                Currency."Amount Rounding Precision");
+        ExpectedVATAmountRCY :=
+            Round(
+                CurrencyExchangeRate.ExchangeAmtLCYToFCY(
+                    ExpenseReportHeader."Posting Date", CurrencyCode, ExpenseReportLineVATSpec."VAT Amount (LCY)",
+                    ExpenseReportHeader."Reimbursement Currency Factor"),
+                Currency."Amount Rounding Precision");
+        Assert.AreNearlyEqual(91.67, ExpenseReportLineVATSpec."VAT Base Amount", 0.01, 'VAT base amount must be recalculated.');
+        Assert.AreNearlyEqual(18.33, ExpenseReportLineVATSpec."VAT Amount", 0.01, 'VAT amount must be recalculated.');
+        Assert.AreNearlyEqual(ExpectedVATBaseAmountRCY, ExpenseReportLineVATSpec."VAT Base Amount (RCY)", 0.01, 'VAT base amount in reimbursement currency must be calculated from LCY.');
+        Assert.AreNearlyEqual(ExpectedVATAmountRCY, ExpenseReportLineVATSpec."VAT Amount (RCY)", 0.01, 'VAT amount in reimbursement currency must be calculated from LCY.');
+        Assert.AreNearlyEqual(ExpectedVATBaseAmountRCY + ExpectedVATAmountRCY, ExpenseReportLineVATSpec."Amount (RCY)", 0.01, 'Gross amount in reimbursement currency must equal base plus VAT.');
+
+        // [WHEN] The report is approved for reclaim and posted.
+        UpdateExpenseReportLinesWithVendor(ExpenseReportHeader);
+        ExpenseReportHeader.PerformManualRelease();
+        PostExpenseReportWithConfirmation(ExpenseReportPost, ExpenseReportHeader);
+
+        // [THEN] The VAT specification journal line is posted with RCY as source currency and LCY as G/L amount.
+        FindPostedExpenseReport(PostedExpenseReportHeader, Expense);
+        PostedExpenseReportLineVATSpec.SetRange("Expense Report No.", PostedExpenseReportHeader."No.");
+        PostedExpenseReportLineVATSpec.SetFilter("Expense Report Line No.", '<>%1', 0);
+        PostedExpenseReportLineVATSpec.FindFirst();
+        Assert.AreNearlyEqual(ExpectedVATBaseAmountRCY, PostedExpenseReportLineVATSpec."VAT Base Amount (RCY)", 0.01, 'Posted VAT base amount in reimbursement currency must be retained.');
+        Assert.AreNearlyEqual(ExpectedVATAmountRCY, PostedExpenseReportLineVATSpec."VAT Amount (RCY)", 0.01, 'Posted VAT amount in reimbursement currency must be retained.');
+        Assert.AreNearlyEqual(ExpectedVATBaseAmountRCY + ExpectedVATAmountRCY, PostedExpenseReportLineVATSpec."Amount (RCY)", 0.01, 'Posted gross amount in reimbursement currency must be retained.');
+        Assert.AreNearlyEqual(ExpectedVATAmountRCY, PostedExpenseReportLineVATSpec."Reclaim VAT Amount (RCY)", 0.01, 'Posted reclaim VAT amount in reimbursement currency must be retained.');
+        GLEntry.SetRange("Document No.", PostedExpenseReportHeader."No.");
+        GLEntry.SetRange("G/L Account No.", GetRefundableDebitAccount(ExpenseCategory.Code));
+        GLEntry.SetRange("Source Currency Code", CurrencyCode);
+        GLEntry.SetRange(Description, CopyStr(Expense.Description + ' / ' + ExpenseSubCategory[1]."Posting Description", 1, MaxStrLen(GLEntry.Description)));
+        GLEntry.CalcSums(Amount, "Source Currency Amount", "Source Currency VAT Amount");
+        Assert.AreNearlyEqual(ExpenseReportLineVATSpec."VAT Base Amount (LCY)", GLEntry.Amount, 0.01, 'Posted G/L amount must use the VAT specification LCY base.');
+        Assert.AreNearlyEqual(ExpectedVATBaseAmountRCY, GLEntry."Source Currency Amount", 0.01, 'Posted source currency amount must use the VAT specification reimbursement amount.');
+        Assert.AreNearlyEqual(ExpectedVATAmountRCY, GLEntry."Source Currency VAT Amount", 0.01, 'Posted source currency VAT amount must use the VAT specification reimbursement amount.');
+    end;
+
+    [Test]
+    [HandlerFunctions('ExpensesModalPageHandler,ConfirmHandler')]
+    procedure PartialVATReclaimPostsReclaimAmountsAndNonDeductibleVAT()
+    begin
+        // [SCENARIO] A partially reclaimable VAT specification posts deductible and non-deductible VAT separately.
+        VerifyPartialVATReclaimPosting(50, 50, 10, 50, 10, 10, 20);
+    end;
+
+    [Test]
+    [HandlerFunctions('ExpensesModalPageHandler,ConfirmHandler')]
+    procedure AsymmetricPartialVATReclaimPostsDifferentDeductibleAmounts()
+    begin
+        // [SCENARIO] An asymmetric partial reclaim keeps deductible and non-deductible VAT amounts distinct.
+        VerifyPartialVATReclaimPosting(70, 70, 14, 30, 6, 14, 28);
+    end;
+
+    [Test]
+    [HandlerFunctions('ExpensesModalPageHandler,ConfirmHandler')]
+    procedure VATSpecPostingBalancesForeignReimbursementCurrency()
+    var
+        Expense: Record Expense;
+        ExpenseUser: Record "Expense User";
+        ExpenseCategory: Record "Expense Category";
+        ExpenseSubCategory: array[4] of Record "Expense Subcategory";
+        ExpenseReportHeader: Record "Expense Report Header";
+        ExpenseReportLineVATSpec: Record "Expense Report Line VAT Spec.";
+        PostedExpenseReportHeader: Record "Posted Expense Report Header";
+        VATPostingSetup: array[3] of Record "VAT Posting Setup";
+        GLEntry: Record "G/L Entry";
+        CreateExpenseReport: Codeunit "Create Expense Report";
+        ExpenseReportPost: Codeunit "Expense Report-Post";
+        CurrencyCode: Code[10];
+    begin
+        // [SCENARIO] Component rounding in a foreign reimbursement currency does not leave the G/L transaction out of balance.
+        Initialize();
+
+        // [GIVEN] A 200.02 LCY expense split into two VAT specs and an 8.56 reimbursement-currency exchange rate.
+        CreateExpenseUserAndCategory(ExpenseUser, ExpenseCategory);
+        CreateSubcategoryWithVATRate(ExpenseSubCategory[1], ExpenseCategory.Code, 20, VATPostingSetup[1]);
+        CreateSubcategoryWithVATRate(ExpenseSubCategory[2], ExpenseCategory.Code, 20, VATPostingSetup[1]);
+        CreateExpenseWithHotelItemizations(Expense, ExpenseUser, ExpenseCategory, ExpenseSubCategory, VATPostingSetup, 100.01, 100.01, 0, 0);
+        CurrencyCode := LibraryERM.CreateCurrencyWithExchangeRate(WorkDate(), 1, 8.56);
+        LibraryExpense.CreateExpenseReport(ExpenseReportHeader, ExpenseUser."No.", CurrencyCode, Expense."VAT Bus. Posting Group");
+        AddExpensesToReport(CreateExpenseReport, ExpenseReportHeader, Expense."No.");
+        ExpenseReportLineVATSpec.SetRange("Document No.", ExpenseReportHeader."No.");
+        ExpenseReportLineVATSpec.FindFirst();
+        ExpenseReportLineVATSpec."VAT Base Amount (LCY)" += 0.01;
+        ExpenseReportLineVATSpec."VAT Base Amount (RCY)" += 0.08;
+        ExpenseReportLineVATSpec."Amount (RCY)" += 0.08;
+        ExpenseReportLineVATSpec.Modify();
+
+        // [WHEN] The report is approved and posted.
+        UpdateExpenseReportLinesWithVendor(ExpenseReportHeader);
+        ExpenseReportHeader.PerformManualRelease();
+        PostExpenseReportWithConfirmation(ExpenseReportPost, ExpenseReportHeader);
+
+        // [THEN] The document balances in LCY and reimbursement currency.
+        FindPostedExpenseReport(PostedExpenseReportHeader, Expense);
+        GLEntry.SetRange("Document No.", PostedExpenseReportHeader."No.");
+        GLEntry.CalcSums(Amount, "Source Currency Amount");
+        Assert.AreEqual(0, GLEntry.Amount, 'The posted G/L entries must balance in LCY.');
+        Assert.AreEqual(0, GLEntry."Source Currency Amount", 'The posted G/L entries must balance in reimbursement currency.');
+    end;
+
+    [Test]
+    procedure UpdateVATSpecificationCreatesSpecForNonItemizedExpense()
+    var
+        Expense: Record Expense;
+        ExpenseCategory: Record "Expense Category";
+        ExpenseSubCategory: Record "Expense Subcategory";
+        ExpenseUser: Record "Expense User";
+        ExpenseVATSpecification: Record "Expense VAT Specification";
+        VATPostingSetup: Record "VAT Posting Setup";
+    begin
+        // [SCENARIO] Updating the VAT specification for a non-itemized expense creates one row from the expense category.
+        Initialize();
+
+        // [GIVEN] A non-itemized expense category with 20% VAT and an expense for 120 LCY.
+        LibraryExpense.CreateExpenseUser(ExpenseUser);
+        LibraryExpense.CreateExpenseCategory(ExpenseCategory, ExpenseCategory."Reimbursement Type"::"Employee Paid", ExpenseCategory."Expense Detail Required"::" ");
+        CreateSubcategoryWithVATRate(ExpenseSubCategory, ExpenseCategory.Code, 20, VATPostingSetup);
+        ExpenseCategory.Validate("VAT Prod. Posting Group", VATPostingSetup."VAT Prod. Posting Group");
+        ExpenseCategory.Validate("Default VAT %", VATPostingSetup."VAT %");
+        ExpenseCategory.Modify(true);
+        LibraryExpense.CreateExpense(Expense, ExpenseUser."No.", ExpenseCategory.Code, '', '', true, '', 120);
+
+        // [WHEN] The VAT specification is updated.
+        Expense.UpdateVATSpecification(Expense."No.");
+
+        // [THEN] One manual VAT specification contains the category defaults and calculated VAT amounts.
+        ExpenseVATSpecification.SetRange("Expense No.", Expense."No.");
+        Assert.RecordCount(ExpenseVATSpecification, 1);
+        ExpenseVATSpecification.FindFirst();
+        Assert.AreEqual(ExpenseVATSpecification.Source::Manual, ExpenseVATSpecification.Source, 'The generated VAT specification must be manual.');
+        Assert.AreEqual(ExpenseCategory.Code, ExpenseVATSpecification."Expense Category", 'The expense category must be copied.');
+        Assert.AreEqual('', ExpenseVATSpecification."Expense Subcategory", 'A non-itemized VAT specification must not have a subcategory.');
+        Assert.AreEqual(VATPostingSetup."VAT Bus. Posting Group", ExpenseVATSpecification."VAT Bus. Posting Group", 'The default VAT business posting group must be used.');
+        Assert.AreEqual(VATPostingSetup."VAT Prod. Posting Group", ExpenseVATSpecification."VAT Prod. Posting Group", 'The category VAT product posting group must be used.');
+        Assert.AreNearlyEqual(20, ExpenseVATSpecification."VAT %", 0.01, 'The category VAT percentage must be used.');
+        Assert.AreNearlyEqual(120, ExpenseVATSpecification.Amount, 0.01, 'The expense amount must be used.');
+        Assert.AreNearlyEqual(100, ExpenseVATSpecification."VAT Base Amount", 0.01, 'The VAT base amount must be calculated.');
+        Assert.AreNearlyEqual(20, ExpenseVATSpecification."VAT Amount", 0.01, 'The VAT amount must be calculated.');
+    end;
+
+    [Test]
+    procedure UpdateVATSpecificationCreatesSpecForZeroRatedNonItemizedExpense()
+    var
+        Expense: Record Expense;
+        ExpenseCategory: Record "Expense Category";
+        ExpenseSubCategory: Record "Expense Subcategory";
+        ExpenseUser: Record "Expense User";
+        ExpenseVATSpecification: Record "Expense VAT Specification";
+        VATPostingSetup: Record "VAT Posting Setup";
+    begin
+        // [SCENARIO] Updating the VAT specification preserves the 0% bucket for a non-itemized expense.
+        Initialize();
+
+        // [GIVEN] A zero-rated non-itemized category with a VAT product posting group and an expense for 120 LCY.
+        LibraryExpense.CreateExpenseUser(ExpenseUser);
+        LibraryExpense.CreateExpenseCategory(ExpenseCategory, ExpenseCategory."Reimbursement Type"::"Employee Paid", ExpenseCategory."Expense Detail Required"::" ");
+        CreateSubcategoryWithVATRate(ExpenseSubCategory, ExpenseCategory.Code, 0, VATPostingSetup);
+        ExpenseCategory.Validate("VAT Prod. Posting Group", VATPostingSetup."VAT Prod. Posting Group");
+        ExpenseCategory.Validate("Default VAT %", VATPostingSetup."VAT %");
+        ExpenseCategory.Modify(true);
+        LibraryExpense.CreateExpense(Expense, ExpenseUser."No.", ExpenseCategory.Code, '', '', true, '', 120);
+
+        // [WHEN] The VAT specification is updated.
+        Expense.UpdateVATSpecification(Expense."No.");
+
+        // [THEN] One zero-rated VAT specification retains the category VAT product posting group.
+        ExpenseVATSpecification.SetRange("Expense No.", Expense."No.");
+        Assert.RecordCount(ExpenseVATSpecification, 1);
+        ExpenseVATSpecification.FindFirst();
+        Assert.AreEqual(ExpenseVATSpecification.Source::Manual, ExpenseVATSpecification.Source, 'The generated VAT specification must be manual.');
+        Assert.AreEqual(VATPostingSetup."VAT Prod. Posting Group", ExpenseVATSpecification."VAT Prod. Posting Group", 'The zero-rated VAT product posting group must be retained.');
+        Assert.AreEqual(0, ExpenseVATSpecification."VAT %", 'The VAT specification must remain zero-rated.');
+        Assert.AreNearlyEqual(120, ExpenseVATSpecification."VAT Base Amount", 0.01, 'The full expense amount must be retained as the VAT base.');
+        Assert.AreEqual(0, ExpenseVATSpecification."VAT Amount", 'The zero-rated VAT amount must be zero.');
+    end;
+
+    [Test]
+    procedure AgentVATSpecificationCannotBeUpdatedModifiedOrDeleted()
+    var
+        Expense: Record Expense;
+        ExpenseCategory: Record "Expense Category";
+        ExpenseSubCategory: Record "Expense Subcategory";
+        ExpenseUser: Record "Expense User";
+        ExpenseVATSpecification: Record "Expense VAT Specification";
+        VATPostingSetup: Record "VAT Posting Setup";
+    begin
+        // [SCENARIO] Agent-authored VAT specifications cannot be regenerated, modified, or deleted.
+        Initialize();
+
+        // [GIVEN] An expense with an Agent-authored VAT specification.
+        LibraryExpense.CreateExpenseUser(ExpenseUser);
+        LibraryExpense.CreateExpenseCategory(ExpenseCategory, ExpenseCategory."Reimbursement Type"::"Employee Paid", ExpenseCategory."Expense Detail Required"::" ");
+        CreateSubcategoryWithVATRate(ExpenseSubCategory, ExpenseCategory.Code, 20, VATPostingSetup);
+        LibraryExpense.CreateExpense(Expense, ExpenseUser."No.", ExpenseCategory.Code, '', '', true, '', 120);
+
+        ExpenseVATSpecification.Init();
+        ExpenseVATSpecification."Expense No." := Expense."No.";
+        ExpenseVATSpecification."Line No." := 1;
+        ExpenseVATSpecification.Source := ExpenseVATSpecification.Source::Agent;
+        ExpenseVATSpecification.Amount := 120;
+        ExpenseVATSpecification.Insert(true);
+        Commit();
+
+        // [WHEN] The VAT specification is regenerated, modified, or deleted.
+        asserterror Expense.UpdateVATSpecification(Expense."No.");
+        Assert.ExpectedError(ModifyOrDeleteAgentVATSpecErr);
+
+        ExpenseVATSpecification.Amount := 121;
+        asserterror ExpenseVATSpecification.Modify(true);
+        Assert.ExpectedError(ModifyOrDeleteAgentVATSpecErr);
+
+        asserterror ExpenseVATSpecification.Delete(true);
+        Assert.ExpectedError(ModifyOrDeleteAgentVATSpecErr);
+
+        // [THEN] The Agent-authored VAT specification remains unchanged.
+        ExpenseVATSpecification.Get(Expense."No.", 1);
+        Assert.AreEqual(ExpenseVATSpecification.Source::Agent, ExpenseVATSpecification.Source, 'The VAT specification source must remain Agent.');
+        Assert.AreEqual(120, ExpenseVATSpecification.Amount, 'The Agent-authored VAT specification must remain unchanged.');
+    end;
+
+    [Test]
+    procedure UpdateVATSpecificationAggregatesItemizationsBySubcategory()
+    var
+        Expense: Record Expense;
+        ExpenseCategory: Record "Expense Category";
+        ExpenseItemization: array[2] of Record "Expense Itemization";
+        ExpenseSubCategory: Record "Expense Subcategory";
+        ExpenseUser: Record "Expense User";
+        ExpenseVATSpecification: Record "Expense VAT Specification";
+        VATPostingSetup: Record "VAT Posting Setup";
+    begin
+        // [SCENARIO] Updating the VAT specification for an itemized expense aggregates equal category and subcategory rows.
+        Initialize();
+
+        // [GIVEN] An itemized expense with two amounts in the same 20% VAT subcategory.
+        CreateExpenseUserAndCategory(ExpenseUser, ExpenseCategory);
+        CreateSubcategoryWithVATRate(ExpenseSubCategory, ExpenseCategory.Code, 20, VATPostingSetup);
+        LibraryExpense.CreateExpense(Expense, ExpenseUser."No.", ExpenseCategory.Code, ExpenseSubCategory.Code, '', true, '', 120);
+        LibraryExpense.CreateExpenseItemization(ExpenseItemization[1], Expense, ExpenseCategory.Code, ExpenseSubCategory.Code, WorkDate(), 50, 1);
+        LibraryExpense.CreateExpenseItemization(ExpenseItemization[2], Expense, ExpenseCategory.Code, ExpenseSubCategory.Code, WorkDate(), 70, 1);
+
+        // [WHEN] The VAT specification is updated.
+        Expense.UpdateVATSpecification(Expense."No.");
+
+        // [THEN] One VAT specification contains the aggregated amount and calculated VAT.
+        ExpenseVATSpecification.SetRange("Expense No.", Expense."No.");
+        Assert.RecordCount(ExpenseVATSpecification, 1);
+        ExpenseVATSpecification.FindFirst();
+        Assert.AreEqual(ExpenseCategory.Code, ExpenseVATSpecification."Expense Category", 'The itemization category must be copied.');
+        Assert.AreEqual(ExpenseSubCategory.Code, ExpenseVATSpecification."Expense Subcategory", 'The itemization subcategory must be copied.');
+        Assert.AreNearlyEqual(120, ExpenseVATSpecification.Amount, 0.01, 'Itemization amounts must be aggregated.');
+        Assert.AreNearlyEqual(100, ExpenseVATSpecification."VAT Base Amount", 0.01, 'VAT base must be calculated from the aggregated amount.');
+        Assert.AreNearlyEqual(20, ExpenseVATSpecification."VAT Amount", 0.01, 'VAT must be calculated from the aggregated amount.');
+    end;
+
+    local procedure VerifyPartialVATReclaimPosting(ReclaimPct: Decimal; ExpectedDeductibleBase: Decimal; ExpectedDeductibleVAT: Decimal; ExpectedNonDeductibleBase: Decimal; ExpectedNonDeductibleVAT: Decimal; ExpectedReclaimVATLCY: Decimal; ExpectedReclaimVATRCY: Decimal)
+    var
+        Expense: Record Expense;
+        ExpenseUser: Record "Expense User";
+        ExpenseCategory: Record "Expense Category";
+        ExpenseSubCategory: array[4] of Record "Expense Subcategory";
+        ExpenseReportHeader: Record "Expense Report Header";
+        ExpenseReportLine: Record "Expense Report Line";
+        ExpenseReportLineVATSpec: Record "Expense Report Line VAT Spec.";
+        PostedExpenseReportHeader: Record "Posted Expense Report Header";
+        PostedExpenseReportLineVATSpec: Record "Posted Exp. Rep. Line VAT Spec";
+        VATEntry: Record "VAT Entry";
+        VATPostingSetup: array[3] of Record "VAT Posting Setup";
+        GLEntry: Record "G/L Entry";
+        Vendor: Record Vendor;
+        CreateExpenseReport: Codeunit "Create Expense Report";
+        ExpenseReportPost: Codeunit "Expense Report-Post";
+        CurrencyCode: Code[10];
+    begin
+        Initialize();
+
+        // [GIVEN] A 120 LCY expense with 20% VAT and a report reimbursed at 2 RCY per LCY.
+        CreateExpenseUserAndCategory(ExpenseUser, ExpenseCategory);
+        CreateSubcategoryWithVATRate(ExpenseSubCategory[1], ExpenseCategory.Code, 20, VATPostingSetup[1]);
+        VATPostingSetup[1].Validate("Allow Non-Deductible VAT", VATPostingSetup[1]."Allow Non-Deductible VAT"::Allow);
+        VATPostingSetup[1].Validate("Non-Ded. Purchase VAT Account", LibraryERM.CreateGLAccountNo());
+        VATPostingSetup[1].Modify(true);
+        CreateExpenseWithHotelItemizations(Expense, ExpenseUser, ExpenseCategory, ExpenseSubCategory, VATPostingSetup, 120, 0, 0, 0);
+        CurrencyCode := LibraryERM.CreateCurrencyWithExchangeRate(WorkDate(), 2, 2);
+        LibraryExpense.CreateExpenseReport(ExpenseReportHeader, ExpenseUser."No.", CurrencyCode, Expense."VAT Bus. Posting Group");
+        AddExpensesToReport(CreateExpenseReport, ExpenseReportHeader, Expense."No.");
+
+        // [GIVEN] The VAT specification is approved with partial reclaim.
+        LibraryPurchase.CreateVendor(Vendor);
+        ExpenseReportLine.SetRange("Document No.", ExpenseReportHeader."No.");
+        ExpenseReportLine.FindFirst();
+        ExpenseReportLine.Validate("Vendor No.", Vendor."No.");
+        ExpenseReportLine.Modify(true);
+        ExpenseReportLineVATSpec.SetRange("Document No.", ExpenseReportHeader."No.");
+        ExpenseReportLineVATSpec.SetRange("Document Line No.", ExpenseReportLine."Line No.");
+        ExpenseReportLineVATSpec.FindFirst();
+        ExpenseReportLineVATSpec.Validate("Reclaim %", ReclaimPct);
+        ExpenseReportLineVATSpec.Validate("Reclaim Status", ExpenseReportLineVATSpec."Reclaim Status"::Approved);
+        ExpenseReportLineVATSpec.Modify(true);
+
+        // [WHEN] The expense report is posted.
+        ExpenseReportHeader.PerformManualRelease();
+        PostExpenseReportWithConfirmation(ExpenseReportPost, ExpenseReportHeader);
+
+        // [THEN] The posted specification retains the partial reclaim amounts in LCY and reimbursement currency.
+        FindPostedExpenseReport(PostedExpenseReportHeader, Expense);
+        PostedExpenseReportLineVATSpec.SetRange("Expense Report No.", PostedExpenseReportHeader."No.");
+        PostedExpenseReportLineVATSpec.SetFilter("Expense Report Line No.", '<>%1', 0);
+        PostedExpenseReportLineVATSpec.FindFirst();
+        Assert.AreNearlyEqual(ReclaimPct, PostedExpenseReportLineVATSpec."Reclaim %", 0.01, 'The posted VAT specification must retain the partial reclaim percentage.');
+        Assert.AreNearlyEqual(ExpectedReclaimVATLCY, PostedExpenseReportLineVATSpec."Reclaim VAT Amount (LCY)", 0.01, 'The posted reclaim VAT amount in LCY must match the partial reclaim percentage.');
+        Assert.AreNearlyEqual(ExpectedReclaimVATRCY, PostedExpenseReportLineVATSpec."Reclaim VAT Amount (RCY)", 0.01, 'The posted reclaim VAT amount in reimbursement currency must match the partial reclaim percentage.');
+
+        // [THEN] The VAT entry contains distinct deductible and non-deductible portions.
+        VATEntry.SetRange("Document No.", PostedExpenseReportHeader."No.");
+        VATEntry.SetRange("VAT Bus. Posting Group", VATPostingSetup[1]."VAT Bus. Posting Group");
+        VATEntry.SetRange("VAT Prod. Posting Group", VATPostingSetup[1]."VAT Prod. Posting Group");
+        VATEntry.CalcSums(Base, Amount, "Non-Deductible VAT Base", "Non-Deductible VAT Amount");
+        Assert.AreNearlyEqual(ExpectedDeductibleBase, VATEntry.Base, 0.01, 'The VAT entry must contain the deductible VAT base.');
+        Assert.AreNearlyEqual(ExpectedDeductibleVAT, VATEntry.Amount, 0.01, 'The VAT entry must contain the deductible VAT amount.');
+        Assert.AreNearlyEqual(ExpectedNonDeductibleBase, VATEntry."Non-Deductible VAT Base", 0.01, 'The VAT entry must contain the non-deductible VAT base.');
+        Assert.AreNearlyEqual(ExpectedNonDeductibleVAT, VATEntry."Non-Deductible VAT Amount", 0.01, 'The VAT entry must contain the non-deductible VAT amount.');
+
+        // [THEN] The non-deductible VAT amount is routed to its configured purchase VAT account.
+        GLEntry.SetRange("Document No.", PostedExpenseReportHeader."No.");
+        GLEntry.SetRange("G/L Account No.", VATPostingSetup[1]."Non-Ded. Purchase VAT Account");
+        GLEntry.CalcSums(Amount);
+        Assert.AreNearlyEqual(ExpectedNonDeductibleVAT, GLEntry.Amount, 0.01, 'The non-deductible purchase VAT account must receive the non-reclaimable VAT amount.');
+    end;
+
     local procedure Initialize()
     var
         ExpenseAgentSetup: Record "Expense Agent Setup";
@@ -409,6 +835,8 @@ codeunit 148330 "Expense Posting VAT Test"
         VATSetup: Record "VAT Setup";
         LibraryERMCountryData: Codeunit "Library - ERM Country Data";
     begin
+        Clear(ExpectedExpenseNo);
+        Clear(ExpectedExpenseReportNo);
         LibraryTestInitialize.OnTestInitialize(Codeunit::"Expense Posting VAT Test");
         LibraryExpense.CleanUpBeforeTesting();
         LibraryExpense.CleanTransactionalData();
@@ -549,10 +977,10 @@ codeunit 148330 "Expense Posting VAT Test"
         ExpenseReportPost: Codeunit "Expense Report-Post";
     begin
         LibraryExpense.CreateExpenseReport(ExpenseReportHeader, ExpenseUser."No.", '', Expense."VAT Bus. Posting Group");
-        CreateExpenseReport.AddExpensesToReport(ExpenseReportHeader);
+        AddExpensesToReport(CreateExpenseReport, ExpenseReportHeader, Expense."No.");
         UpdateExpenseReportLinesWithVendor(ExpenseReportHeader);
         ExpenseReportHeader.PerformManualRelease();
-        ExpenseReportPost.PostExpenseReport(ExpenseReportHeader);
+        PostExpenseReportWithConfirmation(ExpenseReportPost, ExpenseReportHeader);
     end;
 
     local procedure FindPostedExpenseReport(var PostedExpenseReportHeader: Record "Posted Expense Report Header"; Expense: Record Expense)
@@ -561,6 +989,20 @@ codeunit 148330 "Expense Posting VAT Test"
         PostedExpenseReportHeader.FindFirst();
     end;
 
+    local procedure AddExpensesToReport(var CreateExpenseReport: Codeunit "Create Expense Report"; ExpenseReportHeader: Record "Expense Report Header"; ExpenseNo: Code[20])
+    begin
+        ExpectedExpenseNo := ExpenseNo;
+        CreateExpenseReport.AddExpensesToReport(ExpenseReportHeader);
+        Assert.AreEqual('', ExpectedExpenseNo, 'The expected Expenses modal page was not handled.');
+    end;
+
+    local procedure PostExpenseReportWithConfirmation(var ExpenseReportPost: Codeunit "Expense Report-Post"; var ExpenseReportHeader: Record "Expense Report Header")
+    begin
+        ExpectedExpenseReportNo := ExpenseReportHeader."No.";
+        ExpenseReportPost.PostExpenseReport(ExpenseReportHeader);
+        Assert.AreEqual('', ExpectedExpenseReportNo, 'The expected expense report posting confirmation was not handled.');
+    end;
+
     local procedure GetRefundableDebitAccount(ExpenseCategoryCode: Code[20]): Code[20]
     var
         ExpenseCategory: Record "Expense Category";
@@ -650,6 +1092,7 @@ codeunit 148330 "Expense Posting VAT Test"
         RecordRef: RecordRef;
     begin
         ExpenseVATSpecification.Init();
+        ExpenseVATSpecification.Source := ExpenseVATSpecification.Source::Manual;
         ExpenseVATSpecification.Validate("Expense No.", Expense."No.");
         RecordRef.GetTable(ExpenseVATSpecification);
         ExpenseVATSpecification.Validate("Line No.", LibraryUtility.GetNewLineNo(RecordRef, ExpenseVATSpecification.FieldNo("Line No.")));
@@ -747,7 +1190,7 @@ codeunit 148330 "Expense Posting VAT Test"
 
         // [GIVEN] Expense report is created with expenses added
         LibraryExpense.CreateExpenseReport(ExpenseReportHeader, ExpenseUser."No.", '', Expense."VAT Bus. Posting Group");
-        CreateExpenseReport.AddExpensesToReport(ExpenseReportHeader);
+        AddExpensesToReport(CreateExpenseReport, ExpenseReportHeader, Expense."No.");
         UpdateExpenseReportLinesWithVendor(ExpenseReportHeader);
         ExpenseReportHeader.PerformManualRelease();
 
@@ -835,12 +1278,18 @@ codeunit 148330 "Expense Posting VAT Test"
     [ModalPageHandler]
     procedure ExpensesModalPageHandler(var Expenses: TestPage Expenses)
     begin
+        Assert.AreNotEqual('', ExpectedExpenseNo, 'An unexpected Expenses modal page was shown.');
+        Expenses."No.".AssertEquals(ExpectedExpenseNo);
+        Clear(ExpectedExpenseNo);
         Expenses.OK().Invoke();
     end;
 
     [ConfirmHandler]
     procedure ConfirmHandler(Question: Text[1024]; var Reply: Boolean)
     begin
+        Assert.AreNotEqual('', ExpectedExpenseReportNo, 'An unexpected confirmation dialog was shown.');
+        Assert.AreEqual(StrSubstNo(PostExpenseReportQst, ExpectedExpenseReportNo), Question, 'The expense report posting confirmation is incorrect.');
+        Clear(ExpectedExpenseReportNo);
         Reply := true;
     end;
 }
diff --git a/src/Apps/W1/ExpenseAgent/test/src/ExpenseReportTest.Codeunit.al b/src/Apps/W1/ExpenseAgent/test/src/ExpenseReportTest.Codeunit.al
index 4d3439a7c03..acc9a32eae1 100644
--- a/src/Apps/W1/ExpenseAgent/test/src/ExpenseReportTest.Codeunit.al
+++ b/src/Apps/W1/ExpenseAgent/test/src/ExpenseReportTest.Codeunit.al
@@ -3251,11 +3251,49 @@ codeunit 148306 "Expense Report Test"
         FindExpenseReportLine(ExpenseReportLine, Expense);
         ExpenseSubcategory.Get(Expense."Expense Category", Expense."Expense Subcategory");
         Assert.AreEqual(
-            Format(Amount) + ' - ' + ExpenseSubcategory."Posting Description",
+            Format(Amount) + ' / ' + ExpenseSubcategory."Posting Description",
             ExpenseReportLine.Description,
             StrSubstNo(ValueMustBeEqualErr, ExpenseReportLine.FieldCaption("Description"), Format(Amount), ExpenseReportLine.TableCaption()));
     end;
 
+    [Test]
+    procedure PostingDescriptionUsesAvailableSubcategoryDescription()
+    var
+        ExpenseCategory: Record "Expense Category";
+        ExpenseSubcategory: array[2] of Record "Expense Subcategory";
+        ExpenseReportLine: Record "Expense Report Line";
+        BaseDescription: Text[100];
+    begin
+        // [SCENARIO] The posting description uses the selected subcategory description when it is available.
+        Initialize();
+
+        // [GIVEN] A report line whose description already includes its original subcategory description.
+        LibraryExpense.CreateExpenseCategory(ExpenseCategory, ExpenseCategory."Reimbursement Type"::"Employee Paid", ExpenseCategory."Expense Detail Required"::" ");
+        LibraryExpense.CreateExpenseSubCategory(ExpenseSubcategory[1], ExpenseCategory.Code, true);
+        LibraryExpense.CreateExpenseSubCategory(ExpenseSubcategory[2], ExpenseCategory.Code, true);
+        BaseDescription := ExpenseCategory."Posting Description";
+        ExpenseReportLine."Expense Category" := ExpenseCategory.Code;
+        ExpenseReportLine."Expense Subcategory Code" := ExpenseSubcategory[1].Code;
+        ExpenseReportLine.Description := CopyStr(BaseDescription + ' / ' + ExpenseSubcategory[1]."Posting Description", 1, MaxStrLen(ExpenseReportLine.Description));
+
+        // [WHEN] A different subcategory is used for posting.
+        // [THEN] Its posting description replaces the original subcategory suffix.
+        Assert.AreEqual(
+            BaseDescription + ' / ' + ExpenseSubcategory[2]."Posting Description",
+            ExpenseReportLine.UpdatePostingDescription(ExpenseCategory.Code, ExpenseSubcategory[2].Code),
+            'The posting description must use the selected subcategory description.');
+
+        // [WHEN] The selected subcategory has no posting description.
+        ExpenseSubcategory[2]."Posting Description" := '';
+        ExpenseSubcategory[2].Modify();
+
+        // [THEN] The base description is retained without a separator.
+        Assert.AreEqual(
+            BaseDescription,
+            ExpenseReportLine.UpdatePostingDescription(ExpenseCategory.Code, ExpenseSubcategory[2].Code),
+            'The base posting description must be retained when the subcategory posting description is unavailable.');
+    end;
+
     [Test]
     procedure DescriptionMustBeFlowFromExpenseCategoryInExpenseReport()
     var
@@ -4485,7 +4523,7 @@ codeunit 148306 "Expense Report Test"
         FindExpenseReportLine(ExpenseReportLine, CopyStr(ExpenseReportPage."No.".Value, 1, 20));
 
         // [GIVEN] Update "Merchant Name" in Expense Report Line.
-        ExpenseReportLine.Validate("Merchant Name", LibraryRandom.RandText(20));
+        ExpenseReportLine.Validate("Merchant Name", CopyStr(LibraryRandom.RandText(20), 1, 100));
         ExpenseReportLine.Modify();
 
         // [GIVEN] Enqueue Expense Sub Category Code, Quantity and Amount for Expense Itemization.
@@ -4702,7 +4740,7 @@ codeunit 148306 "Expense Report Test"
         FindExpenseReportLine(ExpenseReportLine, CopyStr(ExpenseReportPage."No.".Value, 1, 20));
 
         // [GIVEN] Update "Merchant Name" in Expense Report Line.
-        ExpenseReportLine.Validate("Merchant Name", LibraryRandom.RandText(20));
+        ExpenseReportLine.Validate("Merchant Name", CopyStr(LibraryRandom.RandText(20), 1, 100));
         ExpenseReportLine.Modify();
 
         // [GIVEN] Create Expense Report Line Itemization with Refundable and Non-Refundable Expense Sub Category.
@@ -5127,7 +5165,7 @@ codeunit 148306 "Expense Report Test"
         ReleaseExpenseDocument: Codeunit "Release Expense Document";
         Amount: Decimal;
         CurrencyCode: Code[10];
-        NewStartingPoint: Text;
+        NewStartingPoint: Text[50];
     begin
         // [SCENARIO 617013] Verify Starting Point can be updated in Expense Report Line When Expense Report is created from Expense and Starting Point is blank in Expense.
         Initialize();
@@ -5154,7 +5192,7 @@ codeunit 148306 "Expense Report Test"
         FindExpenseReportLine(ExpenseReportLine, Expense);
 
         // [GIVEN] Generate New Starting Point.
-        NewStartingPoint := LibraryRandom.RandText(50);
+        NewStartingPoint := CopyStr(LibraryRandom.RandText(50), 1, 50);
 
         // [WHEN] Update "Starting Point" in Expense Report Line.
         ExpenseReportLine.Validate("Starting Point", NewStartingPoint);
@@ -5177,7 +5215,7 @@ codeunit 148306 "Expense Report Test"
         ReleaseExpenseDocument: Codeunit "Release Expense Document";
         Amount: Decimal;
         CurrencyCode: Code[10];
-        NewEndingPoint: Text;
+        NewEndingPoint: Text[50];
     begin
         // [SCENARIO 617013] Verify Ending Point can be updated in Expense Report Line When Expense Report is created from Expense and Ending Point is blank in Expense.
         Initialize();
@@ -5204,7 +5242,7 @@ codeunit 148306 "Expense Report Test"
         FindExpenseReportLine(ExpenseReportLine, Expense);
 
         // [GIVEN] Generate New Ending Point.
-        NewEndingPoint := LibraryRandom.RandText(50);
+        NewEndingPoint := CopyStr(LibraryRandom.RandText(50), 1, 50);
 
         // [WHEN] Update "Ending Point" in Expense Report Line.
         ExpenseReportLine.Validate("Ending Point", NewEndingPoint);
@@ -6169,8 +6207,8 @@ codeunit 148306 "Expense Report Test"
         ReleaseExpenseDocument: Codeunit "Release Expense Document";
         Amount: Decimal;
         CurrencyCode: Code[10];
-        MerchantName: Text;
-        ExpenseExtDocNo: Text;
+        MerchantName: Text[100];
+        ExpenseExtDocNo: Text[30];
         OriginalMileage: Decimal;
     begin
         // [SCENARIO 616955] Verify that Merchant Name and Ext. Doc. No. must flow from Expense to Expense Report.
@@ -6185,8 +6223,8 @@ codeunit 148306 "Expense Report Test"
         // [GIVEN] Generate Random Amount.
         Amount := LibraryRandom.RandInt(100);
         OriginalMileage := LibraryRandom.RandDecInRange(50, 500, 2);
-        MerchantName := LibraryRandom.RandText(20);
-        ExpenseExtDocNo := LibraryRandom.RandText(20);
+        MerchantName := CopyStr(LibraryRandom.RandText(20), 1, 100);
+        ExpenseExtDocNo := CopyStr(LibraryRandom.RandText(20), 1, 30);
 
         // [GIVEN] Create Expense with Mileage.
         CreateExpense(Expense, true, CurrencyCode, Amount);
@@ -6337,9 +6375,9 @@ codeunit 148306 "Expense Report Test"
         CurrencyCode: Code[10];
         JobNo: Code[20];
         Amount: array[3] of Decimal;
-        LineDescription: Text;
-        AdditionalInformation: Text;
-        LineJustification: Text;
+        LineDescription: Text[100];
+        AdditionalInformation: Text[100];
+        LineJustification: Text[100];
         i: Integer;
     begin
         // [SCENARIO 580731] Verify the data of "Expense Report Details".
@@ -6741,10 +6779,10 @@ codeunit 148306 "Expense Report Test"
         ExpenseUserNo: Code[20];
         CurrencyCode: Code[10];
         Amount: Decimal;
-        MerchantName: Text;
-        LineDescription: Text;
-        AdditionalInformation: Text;
-        LineJustification: Text;
+        MerchantName: Text[100];
+        LineDescription: Text[100];
+        AdditionalInformation: Text[100];
+        LineJustification: Text[100];
         IsBillable: Boolean;
         var JobNo: Code[20])
     var
@@ -6863,19 +6901,19 @@ codeunit 148306 "Expense Report Test"
         ExpenseUserNo: Code[20];
         CurrencyCode: Code[10];
         var Amount: array[3] of Decimal;
-        LineDescription: Text;
-        AdditionalInformation: Text;
-        LineJustification: Text;
+        LineDescription: Text[100];
+        AdditionalInformation: Text[100];
+        LineJustification: Text[100];
         Refundable: Boolean;
         var JobNo: Code[20];
         NumberOfLines: Integer)
     var
         i: Integer;
-        MerchantName: Text;
+        MerchantName: Text[100];
     begin
         for i := 1 to NumberOfLines do begin
             Amount[i] := LibraryRandom.RandIntInRange(100, 200);
-            MerchantName := LibraryRandom.RandText(20);
+            MerchantName := CopyStr(LibraryRandom.RandText(20), 1, 100);
             CreateExpenseReportLine(ExpenseReportLine[i], ExpenseReportHeader, ExpenseUserNo, CurrencyCode, Amount[i], MerchantName, LineDescription, AdditionalInformation, LineJustification, Refundable, JobNo);
         end;
     end;
diff --git a/src/Apps/W1/ExpenseAgent/test/src/ExpenseRuleTest.Codeunit.al b/src/Apps/W1/ExpenseAgent/test/src/ExpenseRuleTest.Codeunit.al
index 0bcb7cb1d67..23af114f889 100644
--- a/src/Apps/W1/ExpenseAgent/test/src/ExpenseRuleTest.Codeunit.al
+++ b/src/Apps/W1/ExpenseAgent/test/src/ExpenseRuleTest.Codeunit.al
@@ -3073,8 +3073,8 @@ codeunit 148301 "Expense Rule Test"
         ExpenseReportPage.Close();
 
         // [WHEN] Update "Expense Ext. Doc. No.", "Merchant Name" in Expense Report Line.
-        ExpenseReportLine.Validate("Merchant Name", LibraryRandom.RandText(30));
-        ExpenseReportLine.Validate("Expense Ext. Doc. No.", LibraryRandom.RandText(30));
+        ExpenseReportLine.Validate("Merchant Name", CopyStr(LibraryRandom.RandText(30), 1, 100));
+        ExpenseReportLine.Validate("Expense Ext. Doc. No.", CopyStr(LibraryRandom.RandText(30), 1, 30));
         ExpenseReportLine.Modify();
 
         // [THEN] Verify that expense Rule Violation is true before adding Itemization.
@@ -3801,13 +3801,13 @@ codeunit 148301 "Expense Rule Test"
         Commit();
 
         // [WHEN] Update Participant Name.
-        asserterror ExpenseReportLineParticipant.validate("Participant Name", LibraryRandom.RandText(10));
+        asserterror ExpenseReportLineParticipant.validate("Participant Name", CopyStr(LibraryRandom.RandText(10), 1, 100));
 
         // [THEN] Verify that Expense "Participant Employee No." is required when some fields are updating.
         Assert.ExpectedTestFieldError(ExpenseReportLineParticipant.FieldCaption("Participant Employee No."), '');
 
         // [WHEN] Update Participant Organization.
-        asserterror ExpenseReportLineParticipant.validate("Participant Organization", LibraryRandom.RandText(10));
+        asserterror ExpenseReportLineParticipant.validate("Participant Organization", CopyStr(LibraryRandom.RandText(10), 1, 100));
 
         // [THEN] Verify that Expense "Participant Employee No." is required when some fields are updating.
         Assert.ExpectedTestFieldError(ExpenseReportLineParticipant.FieldCaption("Participant Employee No."), '');
@@ -3819,13 +3819,13 @@ codeunit 148301 "Expense Rule Test"
         Assert.ExpectedTestFieldError(ExpenseReportLineParticipant.FieldCaption("Participant Employee No."), '');
 
         // [WHEN] Update Participant Title.
-        asserterror ExpenseReportLineParticipant.validate("Participant Title", LibraryRandom.RandText(10));
+        asserterror ExpenseReportLineParticipant.validate("Participant Title", CopyStr(LibraryRandom.RandText(10), 1, 30));
 
         // [THEN] Verify that Expense "Participant Employee No." is required when some fields are updating.
         Assert.ExpectedTestFieldError(ExpenseReportLineParticipant.FieldCaption("Participant Employee No."), '');
 
         // [WHEN] Update Participant Email.
-        asserterror ExpenseReportLineParticipant.validate("Participant Email", LibraryRandom.RandText(10));
+        asserterror ExpenseReportLineParticipant.validate("Participant Email", CopyStr(LibraryRandom.RandText(10), 1, 80));
 
         // [THEN] Verify that Expense "Participant Employee No." is required when some fields are updating.
         Assert.ExpectedTestFieldError(ExpenseReportLineParticipant.FieldCaption("Participant Employee No."), '');
@@ -6991,8 +6991,8 @@ codeunit 148301 "Expense Rule Test"
         ExpenseReportPage.Close();
 
         // [WHEN] Update "Expense Ext. Doc. No.", "Merchant Name" in Expense Report Line.
-        ExpenseReportLine.Validate("Merchant Name", LibraryRandom.RandText(30));
-        ExpenseReportLine.Validate("Expense Ext. Doc. No.", LibraryRandom.RandText(30));
+        ExpenseReportLine.Validate("Merchant Name", CopyStr(LibraryRandom.RandText(30), 1, 100));
+        ExpenseReportLine.Validate("Expense Ext. Doc. No.", CopyStr(LibraryRandom.RandText(30), 1, 30));
         ExpenseReportLine.Modify();
 
         // [THEN] Verify that expense Rule Violation is true before adding Participant.
diff --git a/src/Apps/W1/ExpenseAgent/test/src/ExpenseTestII.Codeunit.al b/src/Apps/W1/ExpenseAgent/test/src/ExpenseTestII.Codeunit.al
index 790a75e0a96..722114c2da5 100644
--- a/src/Apps/W1/ExpenseAgent/test/src/ExpenseTestII.Codeunit.al
+++ b/src/Apps/W1/ExpenseAgent/test/src/ExpenseTestII.Codeunit.al
@@ -1067,7 +1067,7 @@ codeunit 148309 "Expense Test II"
 
         // [GIVEN] Create Expense with Expense Category.
         LibraryExpense.CreateExpense(Expense, ExpenseUser."No.", ExpenseCategory.Code, '', '', true, '', Amount);
-        Expense.Validate("Merchant Name", LibraryRandom.RandText(10));
+        Expense.Validate("Merchant Name", CopyStr(LibraryRandom.RandText(10), 1, 100));
         Expense.Modify();
 
         // [WHEN] Update Amount Reduction in Expense to negative value.
@@ -1730,14 +1730,14 @@ codeunit 148309 "Expense Test II"
 
         // [GIVEN] Create Expense User.
         LibraryExpense.CreateExpenseUser(ExpenseUser[1]);
-        ExpenseUser[1].Validate("E-mail", EmailId);
+        ExpenseUser[1].Validate("E-mail", CopyStr(EmailId, 1, 80));
         ExpenseUser[1].Modify();
 
         // [GIVEN] Create another Expense User.
         LibraryExpense.CreateExpenseUser(ExpenseUser[2]);
 
         // [WHEN] Update the same Email ID in another Expense User.
-        asserterror ExpenseUser[2].Validate("E-mail", EmailId);
+        asserterror ExpenseUser[2].Validate("E-mail", CopyStr(EmailId, 1, 80));
 
         // [THEN] Verify that the error is thrown for duplicate Email ID in Expense User.
         Assert.ExpectedError(StrSubstNo(DuplicateEmailErr, ExpenseUser[2].FieldCaption("E-mail"), EmailId, ExpenseUser[2].TableCaption()));
@@ -1792,7 +1792,7 @@ codeunit 148309 "Expense Test II"
             StrSubstNo(ValueMustBeEqualErr, ExpenseUser.FieldCaption("E-mail"), Employee."Company E-Mail", ExpenseUser.TableCaption()));
 
         // [WHEN] Update Job Title in Employee.
-        Employee.Validate("Job Title", LibraryRandom.RandText(20));
+        Employee.Validate("Job Title", CopyStr(LibraryRandom.RandText(20), 1, 30));
 
         // [THEN] Verify that the Job Title is updated in Expense User.
         ExpenseUser.Get(ExpenseUser."No.");
@@ -1802,7 +1802,7 @@ codeunit 148309 "Expense Test II"
             StrSubstNo(ValueMustBeEqualErr, ExpenseUser.FieldCaption("Job Title"), Employee."Job Title", ExpenseUser.TableCaption()));
 
         // [WHEN] Update First Name in Employee.
-        Employee.Validate("First Name", LibraryRandom.RandText(20));
+        Employee.Validate("First Name", CopyStr(LibraryRandom.RandText(20), 1, 30));
 
         // [THEN] Verify that the Name is updated in Expense User.
         ExpenseUser.Get(ExpenseUser."No.");