8.8 PL10 Sales Tax

[Former Member]

Dear Experts

Does PL10 have an issue with calculations?

If I create an invoice with a line item of, for example, a unit price of £300 and set the quantity to 5 - giving a Total (LC) of £1500 - and set VAT code to O1 (17.5%) then Tax Amount (LC) comes up as £257.25.

17.5% of 1500 is 262.5, not 257.25?

The above can be produced using the UK demo company.

Any ideas would be greatly appreciated.

[Former Member · Accepted solution]

This is strange.

The issue occurs with all items under that tax code. It does not occur with other pre-existing tax codes under SBODemoGB, but does occur with any new tax codes I create (standard code, name, output, effective date and rate are the only settings I make).

[former_member1269712 · Accepted solution]

Hi,

It means problem in tax code setup check your ta code and Tax formulation.

Thanks

Sachin

[Former Member · Accepted solution]

Hello,

If the problem is formula based, then shouldn't the gross price be incorrect too?

Regards

[Former Member · Accepted solution]

Hi there,

Have you checked the payment terms? If a cash discount is involved, the VAT amount will reflect the discounted value, and not the 1500.

Thanks,

Raj

[former_member1269712 · Accepted solution]

Hi,

If the Gross price also showing correct it means some discount is involve somewhere. Check your document level / Line level discount also discount related all fields (price lists, special price lists,Payment Terms,Period and Volume Discounts,Discount Groups).

Thanks

Sachin

[former_member1269712]

Hi,

There is no issue in PL10. Did you check any other item or else this problem showing for all items??

Check line level discount I think there is 2% cause difference showing exactly 2% on your price. Right now tax is calculating on £1470.00.

Thanks

Sachin

[Former Member]

Hello,

Thanks for responding.

I have checked the Gross column and that is correct. The invoice headings are as follows:

Item No.

x

Quantity

5

Unit Price

300.00

Disc

0.00

VAT

O1 (17.5)

Total (LC)

1500.00

Tax Amount (LC)

257.25

Gross Total (LC)

1762.50

As you can see, the gross calculates properly - so where is the Tax Amount 257.25 coming from?

Regards

Edited by: L Soyer on Jul 23, 2010 11:31 AM

[former_member1269712]

Hi,

This problem for all items with all your created tax codes or all taxcodes for that item only? Because of something is wrong somewhere check your tax code formulation or check same tax code with new item. Or Same item with new taxcode.

Also tell check if you set any prices in Price list or special price list may be discount should be there.

Thanks

Sachin