Calculation of VAT on freight amount

[Former Member]

Dear Experts,

We have a requirement of as under:

VAT amount is to be calculated on Freight amount too in addition to Basic Excise duty, ECess and Scess.

Tax code is : Excise duty 12+2+1 % (setoff)+VAT 5% (setoff)

Calculation structure is as under: (currency: INR)

1000.00	Gross price
120.00	ED 12%
2.40	Ecess 2%
1.20	SCess 1%
200.00	Freight
1323.60	Subtotal
66.18	VAT 5%
1389.78	Total

Since, both Excise duty and VAT is setoff. Hence my intorised amount should be 1200 (1000+200 i.e. gross price + freight). All calculations are OK but inventorised price is coming as 1000 only instead of 1200.

Kindly help on this.

regards,

[former_member186100]

please share accounting entries of GR, secondly do check in M/08 if you have marked freight condition statistical.

[Former Member]

Hi Avinash,

Thanks for the reply.

For  info, I have checked the inventorised amount in PO only (header condition). Effective price is okay but inventorised price is not considering the freight amount.

In M/08, Account key accruals has been taken as FR1 (freight clearing) and condition is statistical.

Pl suggest.

regards,

[former_member187965]

Hi Raj,

What are the accounting entries at GR ?

[former_member186100]

remove statistical check box in M/08 and test it for new PO in you test environment ( testing server) , I think that will sort your issue out.

[Former Member]

Statistical check was put after your suggestion only..and it was not working then also.

[former_member187965]

Hi Raj,

Share the "PO freight condition", "PO history" and "GR accounting entries" screen shot, so that we can come to the solution of this problem.

[ajitkumar]

when you post the GR the freight will get added to the material.

you have maintained freight as an accrual condtion. The freight cost may be due to some other vendor and not the material vendor

if the freight is to be paid to the same vendor, make it a freight type condtion without accrual. then it will add up in the total amount due to the vendor. using subtotals ( 6) you can ensure that freight so entered is considered only for VAT and not for excise too.

PO show the cost to be paid to the vendor and is not an exact measure of the material price.

[former_member187965]

Hi Raj,

This means that freight amount is not getting loaded on material. What is the accounting entry you are getting for freight amount (200) at GR ?

In standard case, material a/c gets debited and the freight clearing a/c gets credited.

As in your case, material a/c is not getting debited, so to which a/c debit entry is going ?

Also, check in M/06 for the freight condition type what is the "Condition Category", it should be,

"B - Delivery Costs".

[Former Member]

Hi Shailesh,

Thanks for the reply.

Condition cat is 'B' in M/06

In M/08, Account key accruals has been taken as FR1 (freight clearing).

For your info, I have checked the inventorised amount in PO only (header condition). Effective price is okay but inventorised price is not considering the freight amount.

Pl suggest.

regards,

[former_member187965]

Hi Raj,

What are the accounting entries at GR ?