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Jul 10, 2019 at 01:30 PM

Book deductible tax item on Supplier invoice

129 Views Last edit Jul 15, 2019 at 02:55 AM 2 rev

Hello all,

I need a solution for the following scenario

We have a company vehicle/machinery.

It has a repair and we have sent it to an external Service provider(Supplier) for service

The total service charge is 1000 Euros

and the total tax on the service is 190 Euros (19%)

But as we have insurance on the vehicle/machinery; our insurance provider pays 900 Euros to the Supplier.

So we need to pay the remaining 100 Euros(Total invoice value 1000 minus 900 Euros insurance company paid on our behalf) and the tax amount of 190 Euros to our Supplier.

Finally in the Supplier invoice we should book 100 Euros towards the service charge in one line item and 190 euros of tax in the second line item.

I created one line item with 100 Euros and selected an expense GL account in cost distribution sub tab under items tab

For the second line item (only tax) I selected the Import tax debit item type under the Basic sub tab of Items tab, but the system does not let me post the invoice with out selecting Tax code in the line item.

I do not want to use Custom Duty invoice because I cannot give a reference of Purchase order.

Can any one suggest a solution for this please?

Best regards,

Vijay S