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MIRO VAT Tax Calculation based on original GR/IR amount

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Dear Expert

Please help on the client's requirement below. For Account Payable invoice using MIRO, VAT should be calculated based on the original GR/IR amount excluding any deduction. For example:

GR/IR amount 1000

Deduction (inputted in MIRO GL Account tab) 200

Amount (inputted in MIRO amount field) 1000 - 200 = 800

Expected amount for VAT = 10% * 1000 = 100

But currently in MIRO, VAT is calculated based on the gross amount after deduction (10% * 800 = 80). How can I setup the VAT code so it will calculate VAT value based on 1000, not 800. Picture is attached for reference purpose.

Thanks

Accepted Solutions (1)

Accepted Solutions (1)

Hi Alvin,

From what you describe the deducted amount is not VAT relevant. If I got it right, shouldn't it be enough if you insert a different VAT code, not relevant or exempt tax code, in 200 line item? Just a suggestion.

Hope it helps.


Regards,

Filipe

Answers (2)

Answers (2)

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Hi Filipe, Madhu

Thanks, that is the correct answer. Much appreciated

madhubabu_moturi
Explorer
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Hi,

Remove tax code in GL line item (200), then tax only calculates on 1000. In current screen shot tax is calculating on both PO and GL line means debit and credit, balance 80 is appearing.