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Tax Rate Variance - Calculation Logic/Formulae

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edited Jul 15, 2020 3:05AM in Costing 7 comments

Content

1. PO is created with Non Recoverable Tax

2. PO is partially received, Invoiced and closed

3. Tax Lines are cancelled on AP Invoice.

4. Inventory valuation is hitting with an amount, unable to understand the logic. 

    Rate Qty Amount Comments
Ordered Item 9.94 5,390 53576.6  
Tax   8.25% 4420.07  
Received & Invoiced Item 9.94 4,342 43159.48 PO Closed
Tax   8.25% 3560.66 Tax Line cancelled on AP Invoice

 

In Cost Management, Inventory valuation is hit with below amount. Cost information Screenshot in the word attachment for reference. 

Item Price 9.94      
NRTax 0.82005      
TRV -0.6606      
Total 10.09945 4342 43851.812 Inventory Valuation

Question : How/What is the logic to calculate TRV -0.6606/item calculated ? Amount 43851.81 going into Inventory valuation is different from 43159.48 which is the actual invoice amount.

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