Tax Variance Issue
Hi all,
We made 5% sales tax & mistakenly entered 5 against Percentage Recovery Rate field instead of 100% (because tax is 100% recoverable). A PO is made with the same tax code. At the time of invoicing it's noticed that recovery rate is not 100%.
We removed the existing recovery rate & made new one and entered 100 against Percentage Recovery Rate. Tax is updated properly. We checked it by making new/fresh PO & found successful.
On problematic invoice we deleted the tax code fetched after PO match & clicked to Calculate Tax. It made the tax line zero. We again selected the 5% Sales Tax & clicked Calculate Tax again. We were expecting that distribution should show respective tax amount against Recoverable Tax account code ONLY; but the distribution generated by system is as under:
We made 5% sales tax & mistakenly entered 5 against Percentage Recovery Rate field instead of 100% (because tax is 100% recoverable). A PO is made with the same tax code. At the time of invoicing it's noticed that recovery rate is not 100%.
We removed the existing recovery rate & made new one and entered 100 against Percentage Recovery Rate. Tax is updated properly. We checked it by making new/fresh PO & found successful.
On problematic invoice we deleted the tax code fetched after PO match & clicked to Calculate Tax. It made the tax line zero. We again selected the 5% Sales Tax & clicked Calculate Tax again. We were expecting that distribution should show respective tax amount against Recoverable Tax account code ONLY; but the distribution generated by system is as under:
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