Value Added Tax Calculation Method

This field defines the method the vendor uses to calculate VAT taxes.  This method may be either Gross (G), Net (N) or Recalculation (R).  In the Gross method both VAT and discount are calculated on the Gross amount.  In the Net method, discount is calculated on the Gross amount and the VAT is calculated on the Net amount.  In Recalculation, the VAT is based upon the Gross amount and the discount is based upon the Gross amount plus VAT subject to discount.

If the installation Accounting Method is Net then the Recalculation VAT calculation method is not valid.

This field defaults from the Vendor Master File.