Tax Rate Variance on Pay On Receipt AutoInvoices from Purchasing

Hi!  I am looking for some assistance on an EBTax set up.  The set up is working for invoices that are input manually and matched to a Purchase Order.  The tax line is correctly going to the Nonrecoverable tax.

When we create the Purchase Order and run the Pay on Receipt AutoInvoice program using the same tax rate, the tax amount is going to both the Nonrecoverable and Tax Rate Variance distribution lines.

A small amount is going to Nonrecoverable and the rest is going to the Tax Rate Variance, i.e.

Nonrecoverable Amount              $   0.02

Tax Rate Variance                          $11.72

It looks like I may have a set up issue with my Tax Rate / Rule.  Has anyone experienced this type of issue?