Wrong Gross Profit

[Riyas_Rawther]

Item NOKIA 105-BLACK TRA SINGLE has only one purchase and the price is 53 AED. TAX is 5%. Total is 55.65 AED.

When I make sales invoice the gross profit is calculating 55.65 as Buying Price. As the result the gross profit showing negative values.

But I crated another product named Test Item and purchased it at 100+tax (105) and sold at 110+tax showing margin of 10 AED correctly…

Note: I was using this company on 2017, and I cleared the company transactions and started using on 2018.
The previous Stock Settings was FIFO and now it is Moving Average

Please advice

[umair]

Hi,

Average buying rate field shows 55.65 AED for all the Sales Invoices. Buying Amount gets calculated based on the Item’s Qty.

[Riyas_Rawther]

Thanks Umair. The problem WAS we selected the wrong purchase tax template. It was adding all purchase price with tax (Valuation Rate = Cost + 5% Tax).

(see the first line - Consider Tax or Charge for It was “VALUATION AND TOTAL”

Now I set like below… and it the sold items showing correct profit. Please see the tax rule below and advice me if there is changes need.