I have a case a about vat on PO Receipt and need your help.
Here is the example of this case:
PO Amount: 263,144
Tax Amount: 44,734.48
Total Amount: 307,878.48
After I receive and check on Material Transaction there are accounting entries as follow:
Finished Goods: 263,144
Purchase Price Variance: 42,445.94
Raw Material Variance: 2,288.54
FG Inventory Material Overheads: 2,996.18
Raw Materials in Receiving and Inspection: - 307,878.48
Landing Cost Overhead (Freight/Duties): -3,157.72
Receipt Amount at Raw Materials in Receiving and Inspection is the amount that include vat which is not correct. It should not be 307,878.48. It should be 263,144 which is PO amount.
Could you please advise me where can I change the setup?