Expense Claims bug?

Why does Expense Claim deduct Sales Tax amount from the claims total?
Eg. if i enter expense claim of 100 without any Sales Tax in expense claims, the amount will show in summary and P/L report as 100 for that expense. But if i add sales tax it deduct the sales tax amount from the 100 and show the result. So in this case 90 will show in the P/L and 100 in the BS if there is a sales tax of 10%. Am i missing something? This is not how it supposed to be.

Expense Claims must have Amounts are tax inclusive check box.

Generally, Sales Tax aren’t refundable so the expense claim would be for the gross amount.
However for GST/VAT tax related expense claims the entry would be
Credit - Expense Claim 100
Debit - Expense Account 90
Debit - Tax payable 10

Well I should have explained myself well.
Let say item is 100 (Sales tax exclusive)

And sale tax is 10%

Manager must

Credit expense claim 110

Debit expense 100
Debt Sales tax a/c 10

Manager rather

Manager rather subtract 10 from the 100 again and enters 90 in the expense account.

There is no ‘Amounts are tax inclusive’ with Expense claims, So despite selecting sales tax code it still treats it like amounts are tax inclusive.

U get me?

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So the issue here the expense claim calculated as inclusive while abeiku want’s it to be calculated as exclusive tax.

There is no option of exclusive or inclusive tickbox like in sales invoice tav?

Let’s take a look at an example in a pristine business (no other transactions):

We create one expense claim payer and enter a claim for 100. Note, there is no option for tax-exclusive transactions in expense claims. That really would not make sense, because the full amount of the payment made to a merchant by the expense claim payer is being claimed. Tax is not being added to a bill you are sending to a customer. Regardless, if there is no tax applied, here is the expense claim:

And relevant lines in the Summary look like this (everything else is zero):

If 10% tax is now included in the 100, there are two options:

  • The tax is a non-offsetting sales tax, so the tax is treated as part of the 100 purchase price. No tax code is needed, and the Summary does not change.
  • The tax is an offsetting VAT (or similar), so we want to capture it. So we apply a 10% tax code. The tax is backed out of the 100 (not added to it) and the result looks like this:

The business still owes Joseph Sample 100. But only 90.91 of that is an expense. The remaining 9.09 is a contra liability it will collect from the tax authority.

If @Abeiku’s tax-exclusive example is used, the total amount paid and claimed by Joseph Sample would have been 110:

And the Summary would look like this:

Now, one could argue that it would be nice to have a checkbox for tax-inclusive versus tax-exclusive, although for an expense claim it isn’t necessary because the merchant who sold whatever to whoever did the tax calculation for you. All you need to know is the total and the tax rate. And if the tax is non-offsetting, you only need the total.

@Tut I understand but if the programmer wouldn’t need to work too much to put the ‘Amounts are tax inclusive’ there then it would be cool to have that there for consistency sake. Purchase invoice has it, sales invoice has it and others.

I discovered it when I was trying the budget feature out. I entered a budgeted amount and used