Credit Memo generated big amount tax entry

asflores

Hello:

Here is my headache:
1) We have a Purchase Invoice, USD 771.02 + Tax 15% = 886.67 (exch rate: MXP/USD 10.6083)
2) We created a credit memo, USD 771.09 + Tax 15% = 886.75 (exch rate: MXP/USD 10.6083)
(the credit memo amount is greater than the invoice, a mistake)

3) We applied the credit memo to the invoice using the option "Apply Vendor Entries"
4) After having applied the credit memo, we found 3 entries in "Tax Entries" when Navigating the Posted Credit Memo:

Entry Document Tipo Documento Tipo Base Importe
48270 NCCA-00626 Nota Crédito Compra 0.00 0.00
48271 NCCA-00626 Nota Crédito Compra 8,179.21 1,226.85
48272 NCCA-00626 Nota Crédito Compra -86,767.52 -13,014.78

I wish know if the entry 3 is normal (The amount is big), my users from accounting area say it's an error.

I tested entering and applying a credit memo to other invoice but this time the amount was the same in both and it didn't generate a big amount in the entry 3.

Any advice or comment will be very appreciated, thanks

Arturo :shock:

P.D. We have Navision Financials 2.6

Kowa

If the "VAT Bus. Posting Group" and "VAT Prod. Posting Group" in the purchase invoice line and the credit memo line are the same, the tax amount should be too.

Usually there is only one VAT entry for each tax rate (VAT Prod. Posting Groups) used in the document. Do you actually have three different VAT Prod. Posting Groups in this one credit memo ?

Even though it has nothing to do with the tax calculation, you should check the field "Correction" in the purchase credit memo header if you are just correcting an erroneous document. This will create negative debit and credit amounts in the G/L to leave you with the right transaction figures in monthly debits and credits. Only if you are actually sending items back to the vendor this field should not be checked.

asflores

a) I checked both fields in the credit memo and the invoice, they have the same value:
VAT Bus. Posting Group" = "WITH VAT"
VAT Prod. Posting Group = empty.

b) We don't have three VAT Prod. Post Groups in the credit memo

c) I found the field "correction" but it doesn't exist in the screen where the credit memo are captured. Is it updated in other process or should I add it to the screen?

Help please !!!

Arturo

Kowa

If the "VAT Prod. Posting Group" is empty there is definitely something wrong with your VAT setup and your code. Usually, no posting is possible if no VAT Prod. Posting Group exists in the purchase or sales line. Some code like VAT15 would normally be used to distinguish between normal and reduced tax.

about c:
You have to add the field "Correction" to the Purchase ( and Sales) Order Form using the form designer. It will always have to be checked manually, but of course only when appropriate.