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Inappropriate tax liability journal entries when line amounts change before accounting — Cloud Customer Connect
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Inappropriate tax liability journal entries when line amounts change before accounting

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Summary:

When entering AP invoices and changing line amount after initial "validate" activity, but before any accounting, journal entry for tax liability is a bit confusing

Content (required):

If line amount of an AP invoice has to be reduced (e.g. from 500 to 400) - maybe because of a mistake - after first validation, but before first accounting, tax is reduced (e.g. from 95 to 76).

When account, the journal lines contain reduced tax amount 76 (tax on debit, tax liability on credit side) and the reduced expense amount (400 debit) and reduced item liability amount (400 credit). That would reflect the content of the invoice correctly.

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