Sales Tax for the FMCG scenario

vipulchudasama

Hi,

In FMCG business, the standard sales price is an MRP of the item. MRP includes Base item price (landing cost of the item + Margin), item charges and Sales tax togather. Provided, User knows all of these factor, How would he post the sales tax in liabilities with balance impact on the expenses (and not in receivables). Secondly, Sales account should be hit with MRP and not the base item price.

Example:

X item having:

MRP (Maximum Retail Price) - 105

Inclusive of

Landed cost - 80
Margin - 10

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Base Item price - 90
Item Charges - 10
Sales Tax - 05


FORMULA : MRP = (Landed Cost + Margin) + Item Charges + Sales Tax

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Accounting Entries

Navision Standard entries:

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Sales Account 90
Item Charge Account 10
Sales Tax account 05

Receivables account 105


Expected entries from system:

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Sales Account 105
Sales Tax Payable Acc 05
(LIabilities)

Receivable Account 105
Corporate Taxes 05
(Expense Account)


Has anybody done this functionality (With or Without customization) while Navision implementation (Specifically in FMCG business)? Any insights on this would be a great help.

Thanks

Vipul