QAD 2017 Enterprise Edition > User Guides > Global Tax Management > Processing GTM > Average Cost, Recoverable Tax Examples
  
Average Cost, Recoverable Tax Examples
This section shows recoverable tax accruals for a purchase order and supplier invoice. The tax point affects the cost basis for the average cost calculation.
• See Recoverable, Non-Recoverable Tax.
• See Tax Point Effects.
• See QAD Costing User Guide for further information on average cost.
To review the entries for standard cost, see Standard Cost, Recoverable Tax Examples.
Inventory Items (Average Cost, Recoverable Tax)
The following tables show the GL entries for purchases of inventory items. The tax point determines whether the update to AP Tax Recoverable occurs at goods receipt or invoice date. Inventory items are items you purchase to use in manufacturing or to sell to customers.
Tax accrual at goods receipt
• When goods are received, entries are created for received item cost (1) and tax (2).
• When an invoice is received, entries are created for invoice value, including tax (3).
• When an invoice is matched, entries are created for item cost (3) and tax (4).
Tax accrual at supplier invoice
• When goods are received, entries are created for received item cost (1) but not for tax.
• When an invoice is received, entries are created for item cost (2) and tax (3).
• When an invoice is matched, entries are created for item cost (4).