diff --git a/base/src/org/compiere/acct/Doc_InOut.java b/base/src/org/compiere/acct/Doc_InOut.java
index 6b292582a0..b6dd054009 100644
--- a/base/src/org/compiere/acct/Doc_InOut.java
+++ b/base/src/org/compiere/acct/Doc_InOut.java
@@ -21,6 +21,8 @@ import java.sql.ResultSet;
 import java.util.ArrayList;
 import java.util.logging.Level;
 
+import org.compiere.model.MTax;
+import org.compiere.model.MCurrency;
 import org.compiere.model.MAccount;
 import org.compiere.model.MAcctSchema;
 import org.compiere.model.MCostDetail;
@@ -41,6 +43,7 @@ import org.compiere.util.Env;
  *  @author Jorg Janke
  *  @author Armen Rizal, Goodwill Consulting
  * 			<li>BF [ 1745154 ] Cost in Reversing Material Related Docs
+ * 			<li>BF [ 2858043 ] Correct Included Tax in Average Costing
  *  @version  $Id: Doc_InOut.java,v 1.3 2006/07/30 00:53:33 jjanke Exp $
  */
 public class Doc_InOut extends Doc
@@ -364,13 +367,28 @@ public class Doc_InOut extends Doc
 					if (C_OrderLine_ID > 0) 
 					{
 					    MOrderLine orderLine = new MOrderLine (getCtx(), C_OrderLine_ID, getTrxName());
-					    costs = orderLine.getPriceCost();
-					    if (costs == null || costs.signum() == 0)
-						   costs = orderLine.getPriceActual();
-					    costs = costs.multiply(line.getQty());
 					    // Elaine 2008/06/26 
 					    C_Currency_ID = orderLine.getC_Currency_ID();
 					    //
+					    costs = orderLine.getPriceCost();
+					    if (costs == null || costs.signum() == 0)
+					    {
+					    	costs = orderLine.getPriceActual();
+							//	Goodwill: Correct included Tax
+					    	int C_Tax_ID = orderLine.getC_Tax_ID();
+							if (orderLine.isTaxIncluded() && C_Tax_ID != 0)
+							{
+								MTax tax = MTax.get(getCtx(), C_Tax_ID);
+								if (!tax.isZeroTax())
+								{
+									int stdPrecision = MCurrency.getStdPrecision(getCtx(), C_Currency_ID);
+									BigDecimal costTax = tax.calculateTax(costs, true, stdPrecision);
+									log.fine("Costs=" + costs + " - Tax=" + costTax);
+									costs = costs.subtract(costTax);
+								}
+							}	//	correct included Tax					    	
+					    }
+					    costs = costs.multiply(line.getQty());
                     }
                     else
                     {
diff --git a/base/src/org/compiere/model/MMatchPO.java b/base/src/org/compiere/model/MMatchPO.java
index 76b4edb764..b3ea1c4257 100644
--- a/base/src/org/compiere/model/MMatchPO.java
+++ b/base/src/org/compiere/model/MMatchPO.java
@@ -46,6 +46,7 @@ import org.compiere.util.Env;
  *
  *  @author Armen Rizal, Goodwill Consulting
  *  		<li>BF [ 2215840 ] MatchPO Bug Collection
+ *  		<li>BF [ 2858043 ] Correct Included Tax in Average Costing
  *
  *  @author victor.perez@e-evolution.com, e-Evolution http://www.e-evolution.com
  * 			<li> FR [ 2520591 ] Support multiples calendar for Org 
@@ -874,7 +875,22 @@ public class MMatchPO extends X_M_MatchPO
 				// Purchase Order Line
 				BigDecimal poCost = oLine.getPriceCost();
 				if (poCost == null || poCost.signum() == 0)
+				{
 					poCost = oLine.getPriceActual();
+					//	Goodwill: Correct included Tax
+			    	int C_Tax_ID = oLine.getC_Tax_ID();
+					if (oLine.isTaxIncluded() && C_Tax_ID != 0)
+					{
+						MTax tax = MTax.get(getCtx(), C_Tax_ID);
+						if (!tax.isZeroTax())
+						{
+							int stdPrecision = MCurrency.getStdPrecision(getCtx(), oLine.getC_Currency_ID());
+							BigDecimal costTax = tax.calculateTax(poCost, true, stdPrecision);
+							log.fine("Costs=" + poCost + " - Tax=" + costTax);
+							poCost = poCost.subtract(costTax);
+						}
+					}	//	correct included Tax
+				}
 										
 				// Source from Doc_MatchPO.createFacts(MAcctSchema)
 				MInOutLine receiptLine = new MInOutLine (getCtx(), getM_InOutLine_ID(), get_TrxName());