Fixed asset Value incorrect

I’m sorry but I just cant seem to understand if this problem relates to FA or the Purchase Invoice or even if it relates to Tax. I’ll try to explain this with screenshots and will be happy if someone can help me figure.

We bought a refrigerator, TVs and a water dispenser for which we created a Purchase invoice:

The numbers and the tax calculation appears to be fine

However, when I go to FA and check under Furniture & Fixtures, I see:

If you see the last 4 lines that refer back to the 4 lines in the Purchase Invoice, you’ll see that all of them are less by about 0.25%. Unable to figure out why that’s happened OR if it is something wrong with the entry we have done.

Can someone please help/ shed light?

Thank you :slight_smile:

OK! A little research and experimentation and I found out that it has to do with the “Flat rate”.

I removed that and it is alright now.

Can someone let me know what the purpose of the “Flat rate” is?

Thanks again and sorry for the trouble :slight_smile:

The use of the Flat Rate option is explained in the guide Create and use tax codes

1 Like

I agree a constant taxation percentage is a flat not progressive tax.

However Manager used flat rate for something entirely different as per the above link. As usual, easy when you know that’s were the problem is, but not intuitive imo

“Flat rate” is the specific terminology used by English language tax authorities for a particular scheme. So that is what Manager uses. “Progressive” taxes are those that vary based on some criteria, usually income level. I think what @Patch is thinking of might better be thought of as fixed or constant rate taxes.

Thanks @Joe91 :slight_smile:

And sorry guys, about the possibly unnecessary confusion created. The set up was done by a colleague and when he told me that there was a problem, I panicked since it was I that recommended the move to Manager!