diff --git a/erpnext/accounts/doctype/sales_invoice/sales_invoice.py b/erpnext/accounts/doctype/sales_invoice/sales_invoice.py
index 7862f82f6f6..23d3064069c 100644
--- a/erpnext/accounts/doctype/sales_invoice/sales_invoice.py
+++ b/erpnext/accounts/doctype/sales_invoice/sales_invoice.py
@@ -886,18 +886,22 @@ class SalesInvoice(SellingController):
 			)
 
 	def make_tax_gl_entries(self, gl_entries):
+		enable_discount_accounting = cint(frappe.db.get_single_value('Accounts Settings', 'enable_discount_accounting'))
+
 		for tax in self.get("taxes"):
+			amount, base_amount = self.get_tax_amounts(tax, enable_discount_accounting)
+
 			if flt(tax.base_tax_amount_after_discount_amount):
 				account_currency = get_account_currency(tax.account_head)
 				gl_entries.append(
 					self.get_gl_dict({
 						"account": tax.account_head,
 						"against": self.customer,
-						"credit": flt(tax.base_tax_amount_after_discount_amount,
+						"credit": flt(base_amount,
 							tax.precision("tax_amount_after_discount_amount")),
-						"credit_in_account_currency": (flt(tax.base_tax_amount_after_discount_amount,
+						"credit_in_account_currency": (flt(base_amount,
 							tax.precision("base_tax_amount_after_discount_amount")) if account_currency==self.company_currency else
-							flt(tax.tax_amount_after_discount_amount, tax.precision("tax_amount_after_discount_amount"))),
+							flt(amount, tax.precision("tax_amount_after_discount_amount"))),
 						"cost_center": tax.cost_center
 					}, account_currency, item=tax)
 				)
@@ -916,6 +920,8 @@ class SalesInvoice(SellingController):
 
 	def make_item_gl_entries(self, gl_entries):
 		# income account gl entries
+		enable_discount_accounting = cint(frappe.db.get_single_value('Accounts Settings', 'enable_discount_accounting'))
+
 		for item in self.get("items"):
 			if flt(item.base_net_amount, item.precision("base_net_amount")):
 				if item.is_fixed_asset:
@@ -952,7 +958,7 @@ class SalesInvoice(SellingController):
 						income_account = (item.income_account
 							if (not item.enable_deferred_revenue or self.is_return) else item.deferred_revenue_account)
 
-						amount, base_amount = self.get_amount_and_base_amount(item)
+						amount, base_amount = self.get_amount_and_base_amount(item, enable_discount_accounting)
 
 						account_currency = get_account_currency(income_account)
 						gl_entries.append(
@@ -973,18 +979,6 @@ class SalesInvoice(SellingController):
 			erpnext.is_perpetual_inventory_enabled(self.company):
 			gl_entries += super(SalesInvoice, self).get_gl_entries()
 
-	def get_amount_and_base_amount(self, item):
-		amount = item.net_amount
-		base_amount = item.base_net_amount
-
-		enable_discount_accounting = cint(frappe.db.get_single_value('Accounts Settings', 'enable_discount_accounting'))
-
-		if enable_discount_accounting and self.get('discount_amount') and self.get('additional_discount_account'):
-			amount = item.amount
-			base_amount = item.base_amount
-
-		return amount, base_amount
-
 	def set_asset_status(self, asset):
 		if self.is_return:
 			asset.set_status()
diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index 59879e0df58..3d048c36865 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -808,6 +808,27 @@ class AccountsController(TransactionBase):
 							tax_map[tax.account_head] -= allocated_amount
 							allocated_tax_map[tax.account_head] -= allocated_amount
 
+	def get_amount_and_base_amount(self, item, enable_discount_accounting):
+		amount = item.net_amount
+		base_amount = item.base_net_amount
+
+		if enable_discount_accounting and self.get('discount_amount') and self.get('additional_discount_account'):
+			amount = item.amount
+			base_amount = item.base_amount
+
+		return amount, base_amount
+
+	def get_tax_amounts(self, tax, enable_discount_accounting):
+		amount = tax.tax_amount_after_discount_amount
+		base_amount = tax.base_tax_amount_after_discount_amount
+
+		if enable_discount_accounting and self.get('discount_amount') and self.get('additional_discount_account') \
+			and self.get('apply_discount_on') == 'Grand Total':
+			amount = tax.tax_amount
+			base_amount = tax.base_tax_amount
+
+		return amount, base_amount
+
 	def make_discount_gl_entries(self, gl_entries):
 		enable_discount_accounting = cint(frappe.db.get_single_value('Accounts Settings', 'enable_discount_accounting'))