Financial postings of Invoice Accrual

This functionality is specific for India.

In Order Management, the tax related amounts and landed cost amounts incurred on a purchase order are not included at the time of purchase order receipt in standard Infor LN. These amounts are added to invoice accrual in Financials for India Localization.

Note

The additional costs charged by the main business partner are only added to the invoice accrual. The taxes that are payable to supplier are also added to invoice accrual. Import taxes are not added to invoice accrual.

The expensed taxes are added to invoice accrual through integration transaction when you confirm the warehouse receipt.

The claimable taxes are added to the invoice accrual after you process the order tax details in the Process Order Tax Details (tfacp9235m00l) session.

In the below example, the postings are explained with an example. The tax related ledger accounts are defined the Posting Data for Tax Codes (tfgld0171s000) session. The Accounts payable control account is defined in the Accounts by Financial BP Group (tfacp0110m100) session, and Invoice accrual is defined for integration transactions, in the Mapping Scheme (tfgld4573m000) session.

Details	Receipt	Invoiced
Order	1000	1000
ACR (actual claimable tax at receipt) for example, BED	100	100
AER (actual expensed tax at receipt) for example, CST	200	200
ECR (Estimated claimable tax at receipt) for example, VAT	300	310
EER (Estimated expensed tax at receipt) for example, BED	400	405

GRNI (Invoice accrual) = Base amount + other charges of main business partner + expensed tax amount + claimable taxes (processed through order tax details)

The following are the tax postings of invoice accrual:

Step 1. Purchase order approval.

When purchase order is approved in Order Management.

Debit / Credit	Ledger account	Amount	Reconciliation Group
IDT 10001060 Purchase order
Debit	Goods to be received	INR 1000	End Account 104
Credit	Purchase commitments	INR 1000	End Account 113

Step 2. Confirm Purchase Receipt

LN creates the integration transaction when you confirm the purchase receipt

Debit / Credit	Ledger account	Amount	Reconciliation Group
IDT 10001074 purchase order receipt
Debit	Interim Transit -General	INR 1600	interim transit 1
Credit	Invoice Accrual -purchase order receipt	INR 1600	Invoice accrual 3

Step 3. Confirm Warehouse receipt

LN creates the integration transaction when you confirm the receipt in Warehousing.

Debit / Credit	Ledger account	Amount	Reconciliation Group
IDT 10061086 Warehouse receipt
Debit	Inventory	INR 1600	inventory 1
Credit	Invoice accrual -receipts invoiced	INR 1600	invoice accrual 12

Step 4. Process order tax details

After tax order details are processed in the Process Order Tax Details (tfacp9235m00l) session, following postings are generated.

Debit / Credit	Ledger account	Amount	Reconciliation Group
For actual claimable at receipt amounts
Debit	Tax Account(Actual claimabe at receipt)	INR 100	not applicable
Credit	Invoice Accrual	INR 100	invoice accrual 12

Debit / Credit	Ledger account	Amount	Reconciliation Group
For estimated claimable at receipt amounts
Debit	Tax clearing account(Estimated claimable at receipt)	INR 300	not applicable
Credit	Invoice accrual	INR 300	invoice accrual 12

Step 5. Register purchase invoice

At invoice registration or matching

Debit / Credit	Ledger account	Amount	Reconciliation Group
Debit	Registered purchase invoices	INR 1000	not applicable
Debit	Invoice accrual (Claimable amounts 300 + 100)	INR 400	Invoice accrual 3
Debit	Tax clearing account (Tax expensed at receipt)	INR 200	not applicable
Debit	Purchase tax account (tax claimable at invoice)	INR 310	not applicable
Debit	Tax clearing account (tax expensed at receipt)	INR 405	not applicable
Credit	Tax clearing account (Actual claimable at invoice)	INR 300	not applicable
Credit	Accounts Payable control account	INR 2015	not applicable

Step 6. Invoice Approval

At invoice approval:

Debit / Credit	Ledger account	Amount	Reconciliation Group
invoice approval
Debit	Invoice accrual	INR 1000	invoice accrual 12
Credit	Registered purchase invoices	INR 1000	not applicable

Step 7. Process inventory variance

Price variance

Debit / Credit	Ledger account	Amount	Reconciliation Group
IDT 10001065 Purchase order/ price variance
Debit	Interim Variance	INR -5	interim variance 1
Credit	Invoice Accrual -purchase order receipt	INR -5	Invoice accrual 3

Inventory variance

Debit / Credit	Ledger account	Amount	Reconciliation Group
IDT 100061038 Purchase order/ inventory variance
Debit	Interim Variance	INR 5	interim variance 1
Credit	Invoice Accrual -purchase order receipt	INR 5	Invoice accrual 3