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Raising PO based on invoice

hi all if iam raising PO based on invoice shall i raise on net amount or shall i include tax or vat of invoice and when we create po we do select the tax code so what does it do (it includes and calcuate the reporting country vat or tax)

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  • Best Answer
    Posted on Apr 18, 2011 at 12:21 PM

    HI,

    Please Create a PO with the Net amount and select the appropriate Tax code in Item Details (Invoice Tab).

    It basically depends on your accounting Practice on as to how you would capture the cost of Material and Taxes.

    If it includes the Tax , you can use 0% Tax in Tax Code. (if you have defined 0% as Tax )

    I would say that you should mention the Net Price and take Tax from Tax code.

    Hope this helps,

    Amit Bakshi

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    • Former Member

      HI Amith

      what if vendor is diff country and diff tax or vat and source country or customer country is diff how would you select the tax based on whos paying (source ) or whoom we paying to (vendor is source)

  • Posted on Apr 18, 2011 at 12:51 PM

    Hi

    shall i include tax or vat of invoice and when we create po we do select the tax code

    You cannot decide such type of things,ask your client,what business they want.tax adding in material cost or taxes taking separately ,its part of business

    Regards

    Kailas ugale

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