Calculation process10100 *1.17+130/0.93 * =1817+/

Because the book cost of materials does not include the input value-added tax paid at the time of purchase, the materials are lost. Like the last user, the input tax cannot be deducted, so it has to be transferred from the input tax and included in the loss. At the same time, the input tax of value-added tax is reduced.

The same is true for material freight. When it happens, 7% of it is included in the input tax, and only 93% of the freight comes into the cost. Divide the book freight by 93% to get the total freight when it happens.

hope that may help you