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Why accrual entry is passed with tax amount when invoiced as inclusive tax?

Summary:

Why accrual entry is passed with tax amount when invoiced as inclusive tax?

Content (please ensure you mask any confidential information):

Po is coming with exclusive tax. Without tax, amount is 100. In payables, it is invoiced with VAT amount 10 as 110/= with inclusive tax. And PO matched as 110/= in the matching screen.

  1. Why is the accrual account gets debited by 110/= but not 100= even though inclusive tax is applied on the invoice? And invoice level it is calculated properly?
  2. There is a price variance entry passed?

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