Hi
On the invoices we receive from our clearing agent there is an amount for “VAT on bill of entry”. When we implemented SAP in 2012 we created a VAT group for this with the rate as 100% and when processing PO/AP invoices, in addition to selecting this VAT group, we also select the Tax Only checkbox. This balanced the PO/AP invoices to the actual invoices we received from the agent so there was no reason for concern.
However it has not been posting correctly. I’ve included screenshots of the most recent invoice to show what happens. SAP adds VAT to that line at 100%, so the gross price is double the actual price. The actual price posts to WIP and the additional VAT to the VAT account. The document total on the invoice only takes into account the additional VAT and not the actual nor gross price.
The problems are that (1) the actual price is the VAT amount and therefore VAT must not be calculated on that amount and (2) the actual price must post to the VAT account.
Please see screen shots: