Functionality of Tax Included option on Lease Payment schedules

Summary:

What is the functionality of Tax Included option on lease payment schedules

Content (required):

We have created a lease payment schedule, assigned a tax classification and chose yes for 'Tax Included'. I was expecting that AP will process the payment inclusive of taxes. But it calculated the tax on top of the payment amount.

Eg: My payment amount is $2400 inclusive of taxes.

I expected the AP will process the invoice as below:

Line Amount $2300

Tax $100

Total amount : $2400

But it processed the invoice as below:

Line Amount : $2400

Tax: $100

Total: $2500

Does anyone know what is the expected functionality of Tax Included option?