Invoice & Output tax

Question

Hi,
I had set up Out put tax as 10%
When I raise a invoice on customer the Tax instead of adding to basic amount get deducted from the basic amount, say I raise a bill for sales of 10000/- add tax @ 10% total amount to be billed to customer should be 11000/-,
The calculation by system is being generated as follws
Amount billed to Customer 10000/-
Sales A/c                           9096/-
Out Put Tax                          914/-
Please tell me what to do
Regards/ P.K.Jain

Answer 1

Hi ,
One option is that in the transaction where you are entering the Customer Invoice ( i.e. FB70 ) there is an tab of Editing Options .
Click on the tab and and on the General Entry options check mark the option "Calculate Taxes on net amount"
The check on the option ensures that the G/L account amounts entered exclude tax.The rationale behind the setting is as below
"If the tax amounts are to be calculated, you can specify here that the G/L account amounts are to be entered net (i.e. excluding tax). If not, the system assumes that the G/L account amounts entered are gross and not net of tax."
Hope it helps
SJ