We have experienced a problem with purchase invoice processing for carrier invoices. These contain a mixture of domestic carriage (standard rated) and export carriage (zero rated).
The vendor is set as a UK supplier with VAT Bus Group DOMESTIC
We usually deal with this by using a (non-inventory) Item, S-CARR-NI, which is set as VAT Prod Group STANDARD. The posting group (S-CARRIAGE) posts this purchase to the G/L code 59420 (and defaults to VAT Prod post group STANDARD)
or we may simply post as a G/L code using GL code 59420, which has a VAT Prod Post Group of STANDARD.
For the export carriage lines we amend the VAT Bus group to EXPORT.
In the VAT setup the rates we have setup for these are:
DOMESTIC, STANDARD 20%
EXPORT, STANDARD 0%
The problematic behaviour we had was that the invoice displays as expected - that is VAT on the Domestic lines and zero VAT on the export lines.
The invoice amounts, Net, VAT and Total agree to the suppliers invoice.
Preview posting shows postings as expected, consistent with this treatment.
The actual posting entries, once posted, are different. VAT is added to the EXPORT lines and the invoice value increases. (!!)
[The workaround was to key the export lines as VAT Prod group as ZERO instead of standard, which I guess is more accurate]
I have tried to replicate this in a copy company and could replicate the problem.
I tried to set up an example test invoice with four lines (all permutations) with the intention of creating screenshots for this post and have unpredicatble behaviour.
I did four lines:
Item S-CARR, Export,Standard £10 - no VAT added (yet)
Item S-Carr, Domestic, Standard, £100 - 20 VAT added as expected.
GL code 59420, Export, Standard, £1 000 - no VAT added
GL Code 59420, Domestic Standard £10 000 - £2 000 VAT added
All as expected.
Tried preview posting and all the VAT is removed.
I look at the invoice statistics and it shows as all zero VAT
So Now I have the opposite problem - removal of the VAT on Domestic, Standard lines.
Also - when I first tried creating an example I got very weird behaviour. All as expected, tried a preview, VAT went supre weird - attributing all the VAT to one line ??
What on Earth is going on and how do I fix it?
