You have created a Supplier Invoice with Import VAT tax code. You see that for this supplier invoice the Tax Amount calculated for a line item is the same as the Net Amount entered even though the tax rate maintained is less than one hundred percentage.
Reproducing the Issue
- Go to Supplier Invoicing work center.
- Navigate to the Invoices and Credit Memos view.
- Search for the relevant Invoice, select it and choose the Edit button.
- In the Basic View screen of the Invoice choose the View All button.
- Navigate to the Items tab and select the sub-tab Taxes, under the Tax Details tab you can see that the Tax Amount calculated by the system and the Net Amount for the line item are the same.
The Supplier Invoice is created with the tax code Import VAT. This tax code is to be used with items of type Import VAT Credit Item or Import VAT Debit Item. The line item for your invoice has the Item Type as Invoice Items. The tax code Import VAT is used to record any duty or freight charges against goods imported, and as a result of this the system performs a back calculation on the Net Amount entered. Which means, whatever quantity is updated in the Net Amount field will be calculated as the tax paid for the imported goods and the system will calculate the Tax Net Base Amount back from the Net Amount.
So you will have to use a different tax code if you expect the system to calculate the tax for the Net Amount you update in the invoice for your Invoice Items.
The system is working as designed.
KBA , LOD-CRM-EMP , Employee , How To