# VAT setup

Dear Experts, I need your help of VAT setup,

The system now calculation the VAT wrongly, but a few days ago it was calculation fine, this is the example screenshots from Payment Journal.

The VAT rate is 5%

This is the correct calculation Amount 243.60 * 5% the VAT amount is 12.18 Now I am doing exactly the same entry with the same amount but the system did this formula  Amount ÷ 1.05 * 5%

243.6/1.05=232

232 * 5% VAT = 11.60

This is the screenshot Parents
• You need first to know the following:

1. The VAT calc. in Documents (Purch. & Sales) can be:
• Amount Incl. VAT
• Amount Excl. VAT

You can Enable/Disable that in the Customer/Vendor Card the Field Prices including VAT, then you have the choice. 2. The VAT in the Journals (Gen. Purch. Sales & Payment) you have only to fill the Amount Incl. VAT and the system will take the amount and do this formula

Amount incl VAT/1.VAT rate = Amount Excl VAT

then Calc. the VAT by Amount Excl. VAT * VAT Rare = VAT amount.

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