VAT calculation incorrect at Invoice Posting (FB60)
I created Tax Codes for Sales & Purchase with the following setting:
Acct Key= VST (Input Tax), Condition Type MWVS Tax %= 16%
At the time of Invoice Posting (FB60), I check the "calculate Tax" flag and select the correct tax code. The amount entered is the Amount charged by the Vendor, not inclusive of the 16% VAT. Example: $100
The system posts:
Dr Expense.......84 USD
Dr VAT A/C......16 USD
This is not what is supposed to happen. System is supposed to calculate Tax on the amount ($100) and post $116 to the Vendor. So this is what the entry should be:
Dr. Expense....100 USD
Dr. VAT A/c-....16 USD
Cr. Vendor......116 USD
I am not sure where what the problem is. I checked the Condition Type (MWVS) settings.The condition category is "D" (Tax).
Any help would be highly appreciated.
Thank you much.