VAT calculation incorrect at Invoice Posting (FB60)

Hello all,

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

Cr. Vendor.......100USD.

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.