Pricing Procedure for Zero rated customer

[Former Member]

Hi Experts,

Good day, We have an urgent issue in which the my client is selling taxable goods, but certain customers are so called "zero rated" in which no tax should be applied to them even if the material is taxable.

Gross price (with tax) will be the price of the goods and the system should automatically deduct from here the tax. Would it be possible to make a pricing procedure with tax but no accounting document would be created for that tax amount? I tried to make it statistical but it does not compute the price net of vat  amount (gross less tax).

Sample
Gross Price with Tax 1000 Tax 107.14 Price Net of VAT 892.86 Discount (1% of Price Net of VAT) 8.93 Net Price 883.93

Accounting Entry:

Debit Accounts Receivable	883.93
Debit Discount	8.93
Credit Sales	892.86

Kindly assist me in finding the right pricing procedure.

Regards,

Beloved One

[phanikumar_v3]

"""""

Debit Accounts Receivable	883.93
Debit Discount	8.93
Credit Sales	892.86

Why two debits??

Normally at the time of invoice--

Customer Account Dr

Sales Revenue Cr

VAT/CST Account Cr

Cenvat Suspense Account Cr(If these goods are excisable)

Phanikumar

[Lakshmipathi]

no tax should be applied to them even if the material is taxable.

If you set those customers as non-taxable in tax classification tab of customer master, then system will work as expected.

G. Lakshmipathi

[Former Member]

Hi G. Lakshmipathi,

The problem with this is that the amount being maintained in the system is gross price with tax, but as seen in my sample the accounting entries for the transaction should be net of vat.

Thanks,

Beloved One