Tax being charged to a Project that has a VAT Recovery Rule of 'Fully Recoverable Charged Net'.

Hi,

I have a project that has been set up with a VAT Recovery Rule of 'Fully Recoverable Charged Net', as I understand no VAT should be costed to the project from modules such as AP as the VAT is Recoverable.

With this particular project this appears to be happening.  The goods are receipted and the Net amount gets interfaced into projects which is correct but upon the AP invoice being matched to the PO it appears that VAT is being added to the Project under the Type 'Tax Rate Variance'.

I have looked at a couple of the AP invoices and it appears that some of the entries have been debited/credited during the matching process.