PO for Inventory Item with Tax Accrued at Receipt
In this example, you purchase a quantity of 3 of item A, which has a standard cost of USD $20. Tax is accrued at receipt, and is charged at 20%, with 25% of the tax non-recoverable. You are invoiced for 1 delivered item at USD $20. The matching is saved with a status of Initial, and no usage variances are calculated.
Receipt Postings
The recoverable tax amount is calculated as:
Price * Quantity *% Tax * (% Recoverable / 100)
The non-recoverable tax amount is calculated as:
Price * Quantity *% Tax * (% Non-Recoverable / 100)
Invoice Postings
The debit amounts are calculated as follows:
Price Invoiced * Quantity Invoiced * (% Tax + 100)
Matching Postings
