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 Receipt (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 OrderReceipt AmountInvoice Amount
Order amountINR1000INR1100
Actual CENVAT credit at receiptINR 20INR 20
Actual expensed at receiptINR 30INR 30
Estimated expensed at receiptINR 50INR 55
Estimated CENVAT credit at receipt / Actual CENVAT credit at invoiceINR 40INR 44

 

At the time of receipt

Debit / CreditLedger accountAmount
DebitInventoryINR1000
CreditInterim TransitINR 1000
DebitInterim TransitINR 1000
CreditGoods received not invoicedINR 1000

 

When the inventory is processed in inventory variance

Debit / CreditLedger accountAmount
DebitInventoryINR 80
CreditInventory VarianceINR 80

 

To process claimable tax at receipt

Debit / CreditLedger accountAmount
DebitExcise taxINR 20
CreditExcise ClearingINR 20

 

At the time of registering purchase invoice

Debit / CreditLedger accountAmount
DebitRegister invoiceINR 1100
DebitExcise ClearingINR 20
DebitInterim VarianceINR 30
DebitInterim VarianceINR 55
DebitPurchase taxINR 44
CreditACP PayableINR 1249

 

When purchase invoice is approved

Debit / CreditLedger accountAmount
DebitGoods received not invoicedINR1100
CreditRegister invoiceINR1100
DebitGoods received not invoicedINR -100
CreditPrice varianceINR- 100

 

At the time of process of the inventory variance

Debit / CreditLedger accountAmount
DebitInventoryINR 3
CreditInventory varianceINR 3
DebitInventoryINR 5
CreditInventory varianceINR 5