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Former Member
Apr 13, 2010 at 10:14 AM

Tax on Freight in A/P Invoice goes in Material Account

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Hi Folks,

This problem I was aware of for last two - three yrs. But since I am affected now, thats why this post.

Create an A/P Invoice with a single item (Rs. 1000/-) and tax on the same Lets say VAT@4%.

Add freight in the same row beside the item for say Rs. 100/- with tax code selected as VAT@4%.

Add another freight in the footer of the invoice for say Rs. 200/- with the tax code selected again as VAT@4%.

Add the invoice.

Now see the JE created.

Here you will find that the tax amount on Rs. 1000 (item) and Rs. 100 (row freight) are affecting the VAT @ 4% G/L account.

But the tax amount on Rs. 200 will affect the material account.

IS THIS A BUG.

V IS 2007B PL10.

Please advice.

Jimmy...