IFRS - PO Invoice Tax amount to be added to the cost of the line Item

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Posted on by Samkh

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Hi,

I have a requirement where we are using IFRS standard. When we have a PO invoice where the vendor is taking care of paying the tax to the authorities, for example the invoice line item total is 100$ and tax is 7$, so the invoice total is 107$.

When we post the invoice the expected GL voucher is :

AP CR 107$ and Item cost - expense DB 107$. We don't want any transaction to go to the sales tax code assigned GL account #.

This is not use tax because the vendor is charging the tax and he is in charge of paying the authorities. if it is not standard IFRS recommendation, please provide details or references.

Any idea for a workaround? other than to remove the tax code on the line item?

Thanks

Sam

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Samkh 2,218 on at

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RE: IFRS - PO Invoice Tax amount to be added to the cost of the line Item

Hi,

I agree to remove the tax code. Thanks Sam
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Ludwig Reinhard Microsoft Employee on at

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RE: IFRS - PO Invoice Tax amount to be added to the cost of the line Item

Hi Sam,

Do you have to report somehow on the tax later on through a specific report or form? Or is it that you just have to expense the amount?

In the latter case I would just remove the tax code as you mentioned.

Wondering what kind of tax that is and how it is related to IFRS. Do you have more details on that?

Best regards

Ludwig