Stock Item Purchased was booked to Raw Materials Inventory with tax included

[nutcracker53]

I made purchases for items which included tax. The stock items were booked to Raw Materials Inventory for the cost + tax. Please see attach pdf for detailed transaction summary. Thanks
accountingEntry.pdf

[timschofield]

I have created a part with a purchase price of 20 and a standard cost of 20. Tax is at 20%. I have ordered 10 of these.

After receiving all 10, the GL transaction is:

Dr Stock 200.00
Cr GRN suspense 200.00

After invoicing we have

Dr GRN suspense 200.00
Dr Tax 40.00
Cr Accounts Payable 240.00

On payment we have

Dr Accounts Payable 240.00
Cr Bank 240.00

Which all looks correct to me.

[nutcracker53]

Should the standard cost and purchase price be the same? I though the purchase price should be higher as it includes the tax. so my scenario is standard cost - 1000 and 12% tax,
I made another purchase (1) item - 1000. Upon delivery the entry already includes the tax
Dr Raw Material 1120
Cr GRN Suspense 1120
Would the tax definitions be an issue ? The supplier Tax Reference is 52RDOParanaque and Tax Group is BIR Region. The Tax Rates is set for 52RDOParanaque.