Net or Gross Display for Down Payments 
Net or Gross Display for Down Payments
If you need to post tax on sales/purchases, you must determine whether the down payment should be displayed in the open item account and special G/L accounts with or without tax on sales/purchases.
If you select net
display, the down payment is posted to the open item and the down payment account minus tax on sales/purchases. The tax itself is posted to the input or output tax account.
If you select gross
display, the down payment is posted to the open item and down payment account including tax on sales/purchases. The tax itself is posted to the input or output tax account. To clear the tax, the amount is also automatically posted to a clearing account.
Gross display has the advantage that the down payment amount is displayed in the open item accounts including the taxes on sales/purchases, meaning that the whole amount of the payable or receivable is displayed.
You use the down payment accounts to determine whether the display is net or gross. For this, you enter the appropriate indicator in the field for the treatment of tax.
Down payments with taxes are not supported for tax calculation with a jurisdiction code.
Indicators for displaying taxes
Indicator |
Display |
+B |
Down payments received, gross |
+ |
Down payments received, net |
-B |
Down payments made, gross |
- |
Down payments made, net |