accural tax for free goods

[Former Member]

Hi, friends!

Under Chinese tax law, free sample goods sent out to customers also are due for output tax. The related accounting documents are as below:

Debit: sales cost

Credit: inventory

Credit: accural tax -- output tax

How to make a configuration in pricing procedure and billing? Please give a hand to me. My mailbox: bobchang_china@yahoo.com

Thanks!

[Former Member]

Some of the clients, the tax is complex in business and there is need for accruals, you maintain accrual account keys and corresponding provisional GL accounts. The same business requirement arised in my present project same I approached the same way.

Hope this helps

Suddu