AP Usage Variance (Average Cost, Recoverable Tax)
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 (4), variance (5), tax on item cost (6), and tax on variance (7).
Tax accrual at supplier invoice
• When goods are received, entries are created for received item cost (1) but not 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) and variance (5).
