PO to GL Interface

Prior to version 5.3, Taxes and duties were posted when a GRN was confirmed. However, many customers are of the view that the taxes and duties should be based on Supplier Invoices and Not when a GRN is posted. This is particularly important when invoices from suppliers are based on milestones and not GRN. The new interface fixes this problem. It also takes care of Purchase Discounts which were automatically deducted from price instead of crediting to discounts earned, even when a separate account was specified in GL Interface table for that purpose.

Confirm GRN

When a GRN is confirmed, the following accounting entries are created

GL Interface Type	Sub-account	Currency	Dr	Cr	Notes
Purchase Commission	Prime	(PurchasePrice-Discount)*Commission%/100
Accrued Purchases-Supplier	Agent	Prime	(PurchasePrice-Discount)*Commission%/100
Accrued Purchases-Supplier	Vendor	Prime	PurchasePrice-Discount
Purchase Discount	Prime	Discount
Accrued Purchases-Sundries	Base	AdditionalCost
Inventory/Accruals	Base	StandardCost
Purchase Variance	Base	PurchasePrice*ExchangeRate+AdditionalCost-StandardCost

Post Supplier Invoice - Local Purchases

When a Supplier Invoice is posted, either from GRN or Payment Milestones, the following accounting entries are created.

GL Interface Type/[Account]	Sub-account	Currency	Dr	Cr	Notes
Accrued Purchases-Supplier	Prime	PurchasePrice-Discount
[Accounts Payable]	Vendor	Prime	(PurchasePrice-Discount)*(100+TaxRate)/100
[Tax]	Prime	(PurchasePrice-Discount)*TaxRate/100

Post Supplier Invoice - Imports

When a Supplier Invoice is posted, either from GRN or Payment Milestones, the following accounting entries are created.

GL Interface Type/[Account]	Sub-account	Currency	Dr	Cr	Notes
Accrued Purchases-Supplier	Prime	PurchasePrice-Discount
[Accounts Payable]	Vendor	Prime	(PurchasePrice-Discount)
[Tax]	Prime	(PurchasePrice-Discount)*TaxRate/100
Contingent Duties	Prime	(PurchasePrice-Discount)*TaxRate/100

Examples

Say, PucrchasePrice=USD 100 Discount=10% Commission=5% ExchangeRate=1.5 BaseCurrency=SGD StandardCost=SGD 70 AdditionalCost=SGD 35 Vendor=SUP-000001 Agent=AGNT000001 TaxRate=7%

The generated vouchers will contain

Confirm GRN

GL Interface Type	Sub-account	Currency	PrimeDr	PrimeCr	BaseDr	BaseCr	Notes
Purchase Commission	USD	(100-10)*5/100=4.50	6.75
Accrued Purchases-Supplier	AGNT000001	USD	(100-10)*5/100=4.50	6.75
Accrued Purchases-Supplier	SUP-000001	USD	100-10=90.00	135.00
Purchase Discount	USD	10.00	15.00
Accrued Purchases-Sundries	SGD	35.00	35.00
Inventory/Accruals	SGD	70.00	70.00
Purchase Variance	SGD	100*1.5+35-70=105	105.00
Totals	181.75	181.75

Post Supplier Invoice - Local Purchases

When Country Code of the Business matches that of the Supplier.

GL Interface Type/{Account]	Sub-account	Currency	PrimeDr	PrimeCr

BaseDr ^ BaseCr ^ Notes ^

Accrued Purchases-Supplier	USD	100-10=90.00	135.00
[Accounts Payable]	SUP-000001	USD	(100-10)*(100+7)/100=96.30	144.45
[Tax]	USD	(100-10)*7/100=6.30	9.45
Totals	144.45	144.45

Post Supplier Invoice - Imports

When Country Code of the Business DOES NOT match that of the Supplier.

GL Interface Type/{Account]	Sub-account	Currency	PrimeDr	PrimeCr	BaseDr	BaseCr	Notes
Accrued Purchases-Supplier	USD	100-10=90.00	135.00
[Accounts Payable]	SUP-000001	USD	100-10=90.00	135.00
[Tax]	USD	(100-10)*7/100=6.30	9.45
Contingent Duties	USD	(100-10)*7/100=6.30	9.45
Totals	144.45	144.45