Financial Postings for Expensed taxes
This functionality is specific for India.
Financial postings for expensed taxes are made at the time of
receipt of goods, inventory variance, registeration of purchase invoice and its
approval.
The financial transactions generated after the confirmation of
the receipts in the Warehouse Receipts (whinh3512m000) session, are
explained below with an example.
Note
The ledger accounts are defined for each excise tax code in
the Posting Data for Tax Codes (tfgld0171s000) session. The ACP payable account is
defined in the Accounts by Financial BP Group (tfacp0110m100) session.
The amounts for an purchase order are listed in the following
table:
| Details of Order | Receipt Amount | Invoice Amount |
|---|
| Order
amount | INR1000 | INR1100 |
| Actual CENVAT credit at
receipt | INR 20 | INR 20 |
| Actual expensed at receipt | INR 30 | INR
30 |
| Estimated expensed at receipt | INR 50 | INR
55 |
| Estimated CENVAT credit at receipt / Actual
CENVAT credit at invoice | INR 40 | INR
44 |
At the time of receipt
| Debit /
Credit | Ledger account | Amount |
|---|
| Debit | Inventory | INR1000 |
| Credit | Interim Transit | INR 1000 |
| Debit | Interim Transit | INR
1000 |
| Credit | Goods received not
invoiced | INR 1000 |
When the inventory is processed in inventory
variance
| Debit /
Credit | Ledger account | Amount |
|---|
| Debit | Inventory | INR 80 |
| Credit | Inventory Variance | INR 80 |
To process claimable tax at receipt
| Debit /
Credit | Ledger account | Amount |
|---|
| Debit | Excise tax | INR 20 |
| Credit | Excise Clearing | INR 20 |
At the time of registering purchase invoice
| Debit / Credit | Ledger account | Amount |
|---|
| Debit | Register invoice | INR 1100 |
| Debit | Excise Clearing | INR
20 |
| Debit | Interim
Variance | INR 30 |
| Debit | Interim Variance | INR 55 |
| Debit | Purchase tax | INR
44 |
| Credit | ACP Payable | INR 1249 |
When purchase invoice is approved
| Debit /
Credit | Ledger account | Amount |
|---|
| Debit | Goods received
not invoiced | INR1100 |
| Credit | Register invoice | INR1100 |
| Debit | Goods received not invoiced | INR
-100 |
| Credit | Price variance | INR- 100 |
At the time of process of the inventory variance
| Debit /
Credit | Ledger account | Amount |
|---|
| Debit | Inventory | INR 3 |
| Credit | Inventory
variance | INR 3 |
| Debit | Inventory | INR
5 |
| Credit | Inventory variance | INR
5 |