VAT Calculation in Purchase Order

koalado

Dear all:
For each PO, the VAT calculation method looks like: VAT Amount = Sum(Amount of each line) * 17%. But invoice I get from Vendor uses this formular VAT Amount= Sum (Amount of each line * 17%) . That causes 0.01 amount difference when I post the invoice. Now it's really painful that I have to adjust the account by posting a 0.01 amount journal. Anyone can help? Thanks a lot !

Arhontis

Hi,

Ignore the answer. Wrong post to reply to...

navisi0ne

Hi
you could allow VAT difference by doing the following:

1. in General Ledger Setup, field Max. VAT Difference Amount put the maximum difference you want to allow 2. in Purchase & Payable Setup activate the Allow VAT Difference flag

Depending the form you use to post purchase Invoice you have to insert the VAT amount in these ways:

1. from Purchase Order form: open Statistic form (f9), click on Invoincing tab, put the correct vat amount in the VAT Amount field 2. from Invoice form: open Statistic form (f9) and put the correct vat amount in the VAT Amount field 3. from Purchase Journal form: first of all you have to select field Allow VAT Difference in the General Journal Batch you use to post invoices, then show column VAT Amount in the Journal form and insert in this field the correct vat amount