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Non Dedutable tax code issue

Hi Gurus,

I have one issue, User Created PO with non dedutable tax code and Did GR and while doing IR

Invoice Account Details

Posting Accounting G/L Code Act/ mat/Ven Amount

1 K 220000 Vendor code 5050.02-

2 S 230000 GR/IR Clearing Acc 4449.39

3 M 110950 Material code 600.66

Issue is tax amount is 600.66, Why it is posting Accounting Key M as this is non dedutable tax code, so as per my understanding

System shoud post 600.66 to GR/IR clearing account, so why it is posting to M.

Please suggest where it is went wrong?

Anil

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5 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jun 30, 2010 at 02:50 AM

    Hi,

    What is the GR accounting document?

    In GR the Gr/IR must be 4449.39 and in IR is it balancing that account.

    Cheers,

    Satish Purandare

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 30, 2010 at 03:02 AM

    Hi

    Deductible taxes mean you can avail the input credit and non deductible taxes mean the the values should be inventorized.In your case the system is righly posting the tax amount to the Inventory account.The system decides to either post to Inventory account or Credit account(recievables) by the indicator maintained against the account key against the respective Tax condition type in OBQ3(in std case it is NVV)

    Regards

    Sandeep

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 30, 2010 at 03:20 AM

    hi,

    as in your case you are not availing the cenvat credit, instead you are loading the same on the inventory as you could not avail it.hence the system has loaded the cenvat credit on the material that why you are getting sepearte line item in the accounting doc.

    in the tax procedure you would have assign NVV accounting key against the condition type. you define the details of NVV in OBCN trx where you would have mentioned as seperate line item(2) against the posting indicator. if you have maintained (3) against the posting indicator then it would distribute the expense /revenue item.i.e nothing but your GR/IR account

    Regards,

    velu

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 30, 2010 at 04:41 AM

    HI,

    Check on it:-

    non-deductible-taxes-in-po

    pherasath

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  • Posted on Jul 06, 2010 at 05:46 AM

    Thanks

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