PIT in Transfer Order

hungryandfool

Dear Experts,
I have a scenario with my present client where for all the sales orders, a transfer order is created automatically so that first the finished goods are first transferred from factory location to the concerned godown location and then it is sold.
Now the Transfer Price is the same as the Unit Price in the Sales Order.

Now what the client says is that the Transfer Price is inclusive of Excise and I need to bifurcate the Transfer Price into actual transfer price and excise amount (system should automatically do the bifurcation).
In the current scenario had there been PIT funtionality in the Transfer Order then I could have applied the same to get the transfer price and excise amount. But in the absense of the same I am really stuck.
Kindly help.
I am providing and e.g. in case required.
Unit Price in S.O. = Rs. 5.00

Transfer Price in Transfer Order = Rs. 5.00

Actual Transfer Price (say) = Rs. 4.50

Excise Amount (say) = Rs. 0.50

Please Help [-o<

jubeljoy

You need to calculate the reverse Excise amount from the calculated excise amount by the help of Excise tax structure.

ssingla

I normally recommend to use Sales Order feature for "Unit" transfers within the same company. I know it sounds outrageous but believe me it eases a lot of work with few extra entries in the system.

Like in your present case PIT feature is meant only for Sales and not for transfer orders. You can either customize the tax calculation of transfer order or follow the method mentioned above.

navuser1

ssingla wrote:

I normally recommend to use Sales Order feature for "Unit" transfers within the same company. I know it sounds outrageous but believe me it eases a lot of work with few extra entries in the system.

Like in your present case PIT feature is meant only for Sales and not for transfer orders. You can either customize the tax calculation of transfer order or follow the method mentioned above.

Please explain the process.

Miklos_Hollender

Well, I am not ssingla, but you could handle a location transfer by a sales invoice then a purchase invoice, to a dummy customer / vendor. You would set up special posting groups for this that point to special accounts. The advantage would be that if you need to, you could calculate VAT, in India Excise etc. on it. For example in a location transfer between two EU countries, "intra-community transfer VAT" should be calculated, not paid anything, just reported.

The problem is that these are not legal entities. So your first problem is that the invoice itself is not a legal invoice. Maybe you need a customization there, printing "menu card" on top of the page instead of "invoice" As long as the g/l accounts are set up for these dummy customers and vendors so that it does not affect your normal sales and costs the tax man should be usually OK with it at least in most countries I am familiar with.

Then of course your second problem is that every sales report working from item ledger entries is wrong. Ouch. R113 and so on. Probably you have to filter out the customer posting group or customer price group of these dummy customers from it.

navuser1

Thanks for your reply Sir,

The given explanation is almost same as Inter-Company Transaction in NAV Standard System.
But we do not want to create dummy Vendor/Customer/G/L for this reason.

I think that it's better to customizes the (Structure functionality (IN) ) calculation process to achieve the same without hampering anything.