Applied Amount Handling- Recalucated Vs Prorate: How it works?

Hi Folks,

Currently in our Instance the setup for Applied Amount Handling is "Recalculated", So I have created the below test cases but in both the cases I have not seen the utilization of "Tax Difference Account" as mentioned in Payable User Manual Under section "Taxes on Prepayment Invoices". Can some one clarify? And also if we observe the below accounting entries, in summary the tax rate at prepayment Invoice is the final amount which was paid, is that correct treatment?

Scenario 1: Tax Rate at Prepayment Invoice is 5% and Later it increased to 10% where the Standard Invoice is booked

    

Dr