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Table of Contents
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 |
