commitment control - VAT/taxes

Hello,

When you are budget checking a purchase order with a project, and the purchase order has VAT (or other taxes) included in it, does that VAT get included in the budget checking process? For example, if you have a budget of 100 USD, and a PO that costs 100 USD with VAT of 15% (115 USD), would this fail budget checking? I have tried testing and we keep getting a "Warning" - but we also have a 10% threshold on the budget status. It appears as though it is not including VAT, but i wanted to confirm.

Thanks