Hi I am having a problem with pre-payment and tax.

We have entered the prepayment with a 0 tax rate but when we come to match to payment to an invoice that does have tax then the tax distribution goes wrong.

The example is a prepayment of £1000 with 0 tax applied to an eventual invoice of £3000 that does have tax.

At the distribution line I get;

Tax line for 500 with VAT rate Std

Item line for 2500 with VAT rate Std

Prepayment line (1000) with VAT-0

The distribution Total only shows as 2,000 instead of 3,000 so puts the invoice on a distribution hold.

We are using 11i and cannot have tax on a prepayment line.