tax base amount

[Former Member]

Hi,

I need to seek advice on base amount be it gross or net.

When or under what situation I can use A and when or under what situation I can use B?

A

In FB50, if calculate tax on net amount is flagged in editing option,

offsetting account must add the tax amount 100

Dr xxxxx 1000 input tax 10%

Cr xxxxx 1000

when simulate,

Dr xxxxx 1000

Cr xxxxx 1100

Dr xxxxx 100

B

In FB50, if calculate tax on net amount is not flagged in editing option,

offsetting account not affected, still 1000, but tax account impacted 1000 / 1.10

Dr xxxxx 1000 input tax 10%

Cr xxxxx 1000

when simulate,

Dr xxxxx 909.10

Cr xxxxx 1000

Dr xxxxx 90.90

Thanks

[Former Member]

if you use FB50 to post this kind of entry, that is normally manually post the entry in GL entries instead of posting vendor invoice thru AP module.

For situation A, normally we use this method for the invoice we recevied which indicate net amount, tax amount and taxe code seperately. So it is easier for the user just input the same amount exactly as invoice.

For situation B, sometimes we received the invoice is total amount, not indicate the net amount, tax amount seperately, just put the total invoice amount. For this situation, it is easier for the user put the total amount and let the system calculated the tax amount automatically and posted seperately to the correspondence GL account.

Hope it can help you understand.

[Former Member]

Dear Friend,

Customer account Debit................Rs.1000 (Gross)

To Sales account..........Credit........Rs.900(Net sales)

To VAT.......................cREDIT.......rS.100(TAX)

Best Rgds..

Mani

[Former Member]

hi,

not relevant to my question.

thanks