Purchase from Unregistered Dealer ( India)

PPP · 2009-04-29

Hi,

I have a typical scenario. We purchase Rawmaterials from Unregistered Dealers ( Farmers) and raise an invoice for them. According to the tax rules we have to bear the tax and remit to the government. For. e.g.

Materials cost 1000.00
Tax 40.00
total Cost is 1040/-

But i will not pay 1040 to the supplier instead I pay only 1000/- and end of the month i remit Rs 40/- seperately to govt. How do i do this in Nav. When i use the tax setup it post 1040/- to the Supplier's a/c which is wrong. But at the same time I want show the tax liability in my account books. I tried using Item charges. But that also it updates the supplier's a/c.

Can anybody guide me in how to handle this in NAV 5.0

Thanks in anticipation.

PpP

Alex_Chow · 2009-04-29

Not sure about VAT. But under the sales tax granule, there's a checkbox called Use Tax. Setting the Use Tax will allow you to book additional charges to the G/L without affecting the vendor invoices.

hansika · 2009-04-29

Hi,

Could u explain where is that field In sales tax ?

Just throw some path on this ?

One more thing is if is not change the vendor invoice , then how accounts will get debit & credit same .

Please let me know.

Alex_Chow · 2009-04-29

Not sure about the IN version, but in the WW version and the US version, the Use Tax checkbox is on the purchase line table.

PPP · 2009-04-30

I do agree, it wont tally the trial balance if we post TAX a/c and not to add the tax amount to the supplier's a/c. But then how do we handle such issue?

Alex_Chow · 2009-04-30

PPP wrote:

I do agree, it wont tally the trial balance if we post TAX a/c and not to add the tax amount to the supplier's a/c. But then how do we handle such issue?

Have you tried posting a Use Tax entry then Navigate on it?

What it does is:
Credit A/P - $20
Credit Use Tax - $2
Debit Expense - $22

Try it out and see for yourself.

ssingla · 2009-05-03

You can use "structure" with "Charges" and "Third Party" boolean marked true. You need to define the govt. agency as vendor.
Create the Invoice, Select the structure, select the vendor (as suggested above) and post. You will have 2 vendor ledger entries a) Farmer b) Govt. agency.
At the month end pay the govt agency and apply the bills.

Purchase from Unregistered Dealer ( India)

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