The tax amount is deducted from the customer’s account for onward submission to the government department, but the system subtracts the tax from the customer’s account instead of adding it.
I am talking regarding sale invoice
If you can post a screen shot of the EDIT view of the sales invoice and the tax code it might reveal errors in your settings.
Thanks for responding, but problem had been solved
Can you explain how you solved this problem?
This will help someone in the future who encounters the same problem
When posting a transaction in the system and is Vat or Tax Inclusive, i will use an example of Vat 16% Assuming that the Total sale is 116,000
Then the following entry will take effect
Dr. Accounts Receivable (Customer ) 116,000
Cr. Vat Control Account - 16,000
Cr, Sales Income Account - 100,000
In your report the 16,000 is charged as Vat, amount paid to the govt, however your income is 100,000.00 when checking the amount the client will pay will be your income plus the govt tax that is 116,000