Skip to Content
0
Former Member
Mar 13, 2008 at 09:59 AM

Tax adjustment

63 Views

Today when Accountant gone through the Journal Entries of A/R Down Payment Invoice and A/R Invoice, he had raised me an issue. The issue is regarding the tax calculation in A/R Down Payment Invoice and A/R Invoice.

The Processes which we have made

Sales Order

Items MRP is 1000

Tax Vat 4% is 40

Doc Total is 1040

Made A/R Down Payment invoice

For Rupees 520 up on above sales order tax code selected is vat 4%

In journal it will show advance received 500 Credit and vat 20 Credit

When Delivering the goods, I made an A/R Invoice of remaining payment 520 including payment.

The Processes Which they need

Sales Order

Items MRP is 1000

Tax Vat 4% is 40

Doc Total is 1040

A/R Down Payment invoice

For Rupees 520 up on above sales order tax code selected is Exempt Tax

In journal it will show advance received 520

When Delivering the goods, I made an A/R Invoice of remaining payment 520 including payment

Where tax amount should be 40 credit and 480 should go to Customer account debit

But it is not happening like that 19.22 is Vat Credit and 499.20 is Customer Account debit.

Kindly give me a solution for this.

Note: The customers can pay advance of any value, for easy purpose I have given this example

Edited by: Darius Heydarian on Mar 31, 2008 2:42 PM