Tax Included in Purchase Invoice Total

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When entering Purchase Invoice, is it possible to enter the Total Amount and have the Line Amount prior to tax calculate automatically?
E.g. if I wanted to enter an Ontario invoice for $100 + 13% HST Tax of $13, is it possible to enter $113 into the system and have the $100 Expense item automatically calculate?

Note, we are not using inventory items or such. The scenario above mostly relates to reimbursement of mileage whereby an employee submits an expense report for kilometers driven for business use. The Canada Revenue Agency allows us to claim a refund on a portion of this charge (ITC). So the employee's expense report asks to be reimbursed $200. Using Ontario again, there would an amount of approx $23 ($200/1.13 deducted from $200), so I'd like to simply enter the $200 Total Amount in the Purchase Invoice and have the system back-calculate the Amount Prior to Tax, $177 in this case and a tax amount of $23.

Any guidance on this is appreciated.

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Jens Glathe 6,092 on at

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RE: Tax Included in Purchase Invoice Total

Hi tikkitom,

I downloaded the NAV2013 NA database (CU25, Build 40468) and tried it out. After some tries (and some changes in the setup) I managed to get a purchase invoice with tax. When you add the field "Prices incl. VAT" to the page, it works as advertised :-)

This field is normally not shown in page 51 "Purchase Invoice", but you can try the function out without changing the form. Just set up the vendor you're using with the field "Amounts incl. VAT" to "true".

Afterwards, create a new PO or invoice, and it should read "Amount incl. Tax" and calculate the tax from the entered gross amount.

with best regards

Jens
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RE: Tax Included in Purchase Invoice Total

Hi Jens, thanks very much for your reply!

Unfortunately I am having some trouble using the suggested approach. I have ticked the "Prices Incl. VAT" on the Vendor Card as you suggested, but when I do try to enter an invoice and then click on Statistics I am getting the following error message: Prices Including VAT must be equal to 'No' in the Purchase Header.

Please note that I am using the North American version of NAV 2013. Still, the tax I'm referring to (GST/HST) works exactly the same as Euro VAT.

Also, I see that you're using Item as Type on Purchase Invoice, whereas I'm hoping to simply be able to use G/L as this is how we normally enter our Purchase Invoices. I.e. if I want to record the invoice for Electricity, would like to enter GL Account # 55000, Total Amount Incl. VAT as $282.50 and have the amount $250 (assuming 13% VAT Rate) charged to GL Account #5500 and $32.50 charged to VAT/Tax Paid account.

Please do let me know if there's any further insight you can add to this..

Thank you
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Jens Glathe 6,092 on at

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RE: Tax Included in Purchase Invoice Total

Hi tikkitom,

you can set this behaviour with "Prices incl. VAT" at the vendor and in the purchase invoice, too.

with best regards

Jens