Hello

You can create a new tax code with 50% deductible and make it default for the supplier. The tax code should look like the last line.

After defining a new tax code, make it default for the supplier.

Dont forget to complete posting control IP3 in case control type is other than AC1.

Hope this helps

Thanks, I will give that a try this morning.

Hi,

Thanks so much for your help so far. 

I have set up the code and entered the invoice. The tax code on the line is set as my new code RST50% but the value is still coming through as the 20% value £251.29 rather than £125.65. I can’t seem to get it to change. Does something different need to happen at Preliminary Posting or can this now be corrected at Posting Proposal stage.

Hello @IFSuser9999  

Are you sure you set deductible % to 50? Please verify it.

Thanks again, yes I have the deductible set at 50%

I noticed that if I change the line tax code from RST50 to STD20, and then change back again, the tax figures change to correctly show the restriction. But then when I try to save I get this message.

Hello

your invoice status is PrelPosted. Cancel this invoice and create new one. Change the tax code before saving the invoice

It should work properly