Symptom
You have created intrastate purchase order and system has defaulted 9% tax rate for both the tax types CGST and SGST at the item level of purchase order. However you want to create purchase order for a product which has tax rate 28%.
Reproducing the Issue
- Go to the Purchase Requests and Orders work center.
- Go to the Purchase Order view.
- Select the relevant Purchase Order.
- Navigate to Items tab & select sub tab Taxes.
- Here you see that system has defaulted 18% tax rate. (9% CGST + 9% SGST)
Cause
Wrong tax rate type has been mapped for the corresponding tax code. Hence system defaults the standard tax rate type with 18% (9% CGST + 9% SGST) instead of 28%. (14% CGST + 14% SGST)
Resolution
You can use tax rate type Special 3 & this contains 14% tax rate. When you create a purchase order, system defaults to Standard tax rate at 18% based on configuration settings. If you need 28%, you can change the Tax Rate Type manually to Special 3 and system will pick 14% CGST+ 14% SGST = 28% GST rate. Please follow the below steps to maintain 28% GST tax rate.
- Go to the Purchase Requests and Orders work center.
- Go to the Purchase Order view.
- Select the relevant Purchase Order.
- Navigate to Items tab & select sub tab Taxes.
- Go to Tax Details section and change the Tax Rate Type to Special 3.
- Select Check button and now 28% tax rate has been selected.
- You can Order the Purchase Order document.
Keywords
KBA , AP-PRP , Purchase Request Processing , How To