on 12-27-2015 1:15 PM
Dears,
I'm handling the LC finance through Product type 55A Which will be used when the vendor invoice provided to our bank and we decide that we will Open Financial transaction using the above Product type, the case now that the customer wants to add all the Financial charges (Bank commission, Bank admin exp and Bank interest which available in Other flows tab) to the Cost of the product purchased in the PO.
is it applicable as for my knowledge it can't be done !, as this expenses considered as G/A cost, if it's applicable, it will be really appreciated if you can inform me how that is Done.
Regards,
Ahmed Samir
Hi Ahmed
The above expense is considered as finance expense not G/A Expense ..As far as my knowledge its could be considered as inventory cost or added to asset acquisition cost as it may referred to be "other cost directly attributable to acquisition of inventory " as per IFRS..
Regarding add this cost to P.O as far as my limited knowledge in TRM it can not be done directly from other flow as you mentioned above .. you may use one work around to achieve it.
Firstly create new flow type like " Bank Com -Capitalization " and define it as other flow , then define its account determination to be on intermediate balance sheet account ..
Secondly you can use definition of condition type in MM P.o and create new condition type to distribute the cost of the bank com & others exp in 55A on the purchased inventory items and make its offset posting to the same intermediate balance sheet account used above by TRM ..
then you can clear these amount on regular base between debit posting from TRM and credit posting from MM
Hope this may helps you..
Regards
Mahmoud El nady
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