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Credit 25000.00
Example 2: Create a GRPO of Item A, 100 Nos @ 250.00 with Freight Rs.1000.00 (Freight affecting the Item cost) Journal Entry for GRPO Account Debit Credit Inventory Account 26000.00 Goods Receipt but Not Invoiced 25000.00 Expenses Clearing Account 1000.00 Example 3: Create a GRPO of Item A, 100 Nos @ 250.00 with Freight Rs.1000.00 (Freight affecting the Item cost and Purchase Account Posting is enabled) Journal Entry for GRPO Account Debit Credit Inventory Account 26000.00 Goods Receipt but Not Invoiced 25000.00 Expenses Clearing Account 1000.00 Purchase Account 25000.00 Purchase Expenses Offset Account 1000.00 Credit: Purchase Offset Account 26000.00
Debit 21000.00
21000.00
Credit
2575.00
No, Local Tax like CST/VAT is accounted here The Transaction Journal is purely for CENVAT components.
Landed Cost
This transaction is required, when there are additional expenses incurred on purchase by the buyers (not charged by supplier) and the same needs to the included in the Item cost. The Landed Cost transaction can only be booked against a GRPO. Basically this transaction is required when there is additional Freight, Clearing & Forwarding Charges. Custom Duty etc against a GRPO which is born by the buyer. Example 1: A GRPO has made and there was an additional cost of Custom Duty Rs.10000.00 and Clearing & Forwarding Charges Rs.7000.00 Journal Entry for Landed Cost Account Inventory Account Custom Duty Payable Clearing & Forwarding Charges Payable
Debit 17000.00
Debit 17000.00
17000.00 17000.00
While making the payment to your Clearing Forwarding Agent or Booking the Invoice for them, you need to select the Custom Duty Payable and Clearing & Forwarding Charges Payable respectively. So, that both the G/L Account will be nullify at the end. For Custom Duty, the Offset Account can be mapped through Administration => Setup => Inventory => Custom Groups and select the Customs Allocation Account. Also this transaction will take place if the Customs Affects Inventory option is checked in the Landed Cost screen For Other Landed Cost like Clearing & Forwarding Charges, Insurance, Freight the Offset Account can be mapped through Administration => Setup => Purchase => Landed Cost and select the Landed Cost Allocation Account for respective heads
Credit 28678.00
For Excisable Item Purchase, you should book the Incoming Excise Invoice first, without that system will not allow booking the A/P Invoice. After booking the A/P Invoice the Goods Received but Not Invoiced, Expenses Clearing Account and Incoming CENVAT Clearing Account will be nullified For Non-Excisable Item, the Incoming Excise Invoice is not required. So, the local taxes will be accounted only on booking of A/P Invoice. If the A/P Invoice created for Non-Inventory Item then the related Expenses G/L Account under Item Group linked to the Item will be debited instead of Goods Received but Not Invoice.
Credit 11030.00
Debit 21000.00
Credit 21000.00
Debit 2206.00
Credit 26000.00
Inventory Account Debit = (100 Nos 30 Nos)=70 Nos x 10 (Rs.260 Rs.250) Purchase Price Difference Debit = 30 Nos x 10 (Rs.260 - Rs.250)
Example 2: Created a GRPO for Item A, 100 Nos @ 250.00 and after that 100 Nos of material has been issued for consumption and after the GRPO while booking the A/P Invoice it is found the purchase is 260.00 per unit. Journal Entry for A/P Invoice Account Supplier Account Goods Received but Not Invoiced Purchase Price Difference Note:
Credit 26000.00
Purchase Price Difference Debit = 100 Nos x 10 (Rs.260.00 Rs.250.00) If the Purchase Difference is negative then the Inventory Account and Purchase Price Difference account will be credited instead of debit. The above example is considering that the material consumption is from the source GRPO The Purchase Price Difference may occur from the Landed Cost Transaction as well, if the material has removed before booking of the Landed Cost transaction. Basically the Purchase Price Difference is part of the Cost of Goods Sold, so it is advised that map this account under the COGS portion of your P&L Statement.
Recommendation: Book all the additional cost related to purchase before consuming the material to avoid the Purchase Price Difference posting.
26000.00
Ideally the Goods Clearing Account should be a Income type account. Because the buyer has suppose to pay to the supplier for the purchase, but by cancelling the GRPO means that no A/P Invoice will be booked against that and the Inventory is already in and there is no liability for the same. A GRPO can only be cancelled when the A/P Invoice is not preceded for the same. Expenses Clearing Account only comes in the picture, if there is any Freight Charges etc. is there in the GRPO.
Recommendation: In case of GRPO Reversal is required, we recommended not to cancel the GRPO It is better to create a Goods Return for the same to have a accurate Transaction Journal posting.