Payment Discount, VAT posting

rossi

I have a vendor with Payment Term 30D(15D) with a 1% discount
I post a purchase invoice, amount 10000
In the Payment Journal I use Suggest Vendor Payment.
This generates a line with the correct discounted amount. 9900
When I post the journal I also get 100 in the Payment Disc.Credit Acc.

The problem is that VAT is not calculated of the Payment Discount.
VAT shold be calculated from 9900 and not 10000, but posting of Payment Journal create not VAT Entry.

If I post directly to my Payment Disc.Credit Acc. account VAT is calculated correctly..

How do you solve this?

Thanks in advance..

Rossi

AdamRoue

Hi

How have you set it up in the general ledger with regards to the Payment Discount excludes VAT and the Adjust Payment Discount flags.

rossi

Hi

In General Ledger Setup Form :
Pmt. Disc. Excl. VAT = FALSE
Adjust for Payment Deisc. = TRUE

Rossi

rossi

Thanks AdamRoue !

This solved the problem

Adjust for Payment Disc. = TRUE in General Ledger Setup
Adjust for Payment Discount = TRUE in VAT Posting Setup
Payment Disc. Credit Acc. = xxxx in Vendor Posting Groups

Rossi