Anyone here encountered this issue?
VAT computation discrepancies like for example 12% of 1000 = 120 but if you check the option “Is there any additional computation?” in “Purchase Taxes and Charges” or screenshot below the value change to 107.14
What is “Check - Is there any additional computation” ? I’m not sure what this is
But from what I’m seeing, first screenshot is saying VAT is already included in the P1000 amount (so working backwards, the line item is P892.86 + P107.14 VAT total is P1000)
Second scenario P1000 amount excluds VAT so becomes P1000 + P120 VAT total is P1120.
So if you need the net total VAT inclusive to be P1000, you tick that checkbox.
Then system will calculate VAT working backwards
The gross amount becomes P892.86
VAT Becomes P107.14
Total (VAT inclusive) =P1000 as you want.
The problem you think the 12% is calculated on the P1000, and it’s not. VAT is calculated on gross amount. P1000 ALREADY includes VAT (otherwise you are referring to VAT exclusive scenario and it will be added making total P1120)