We are handling Sales Tax with W1 and we have a problem for Purchases. When we enter a Purchase Invoice for a Fixed Asset, for instance, to which we want to apply USE TAX, then the system debit to the Fixed Asset Account only the base amount (Amount excl. Tax) and debits also an account Consumption tax (Purchases) for the amount calculated for taxes. We had expected the system to debit the whole amount to debit in a single account, that for Fixed Assets.
Nevertheless, the system calculates right the tax amount and applies correctly those accounts that it has to credit.
So the problem is that we would expect the system to capitalize the tax amount in the Fixed Asset account in it does not do it this way. What can be the cause for this problem?
In the image below we have our situation upside and the desire situation downside.
Comments
Then on the purchase order My guess is that you used FULL VAT which is very different to US USE TAX.
Note that even if you tick the USE TAX box, then unless Sales Tax data is set up, it will ignore this field.
Hope this helps.