Service tax accounting entries
Hi,
I have created the PO with service tax and same PO has been matched to invoice and validated & accounted.
Now Accounting Entries are generated as below
Invoice Amt 510
Service tax amt 10 @2%
| Type | DEBIT | CREDIT |
| Charge | 500 | |
| Liability | 500 | |
| Interim Recover Account | 10 | |
| Liability | 10 |
Payment has been made against to same invoice and accounting entries are flow to GL. Now,i have check the same service tax through service tax repository window and accounting entries are generated as below
| Type | DEBIT | CREDIT |
| Recovery Account | 10 | |
| Interim Recover Account | 10 |
what could be the reason recovery account debited and interim recover account credited in repository window form and how this accounting entries are reflect in GL module.
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