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Sep 15, 2010 at 07:02 AM

Separate Lines debited to Customer Account

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Dear All

Kindly go through the following details and guide me :

My Client is a Project Based Organisation. So for every project they take advance as Down Payment.

For example if the Project value is 1.0 Lac INR and as per agreement Down Payment is 10%, then Client takes the down payment of 10000.

Now client started supplying the material to its Customer (we use delivery based billing). The requirement is that while doing the invoicing of a particular line item, the down payment should be adjusted, for Example if the Base Price is = 5000, and Sales Tax = 50, the required Accounting Entry should be as follows :-

Required A/C Entry

Customer Dr 4950

Customer Dr 50 (adjustment against advance)

Customer Dr 50 (Tax)

Revenue Cr 5000

Tax Payable Cr 50

By using the Installment Payment Terms, I am able to get the following accounting entry:

Customer Dr 4995

Customer Dr 505 (adjustment against advance)

Revenue Cr 5000

Tax Payable Cr 50

So system is basically adding the Tax Value and Basic Price and then as per the terms in Installment Payment Terms dividing the value as per the percentage maintained (here it is 90% and 10%) in payment terms.

So client reuirement is to send separate line for accounting entries which is posted to Customer G/L where revenue amount should be divided as per the Installment Payment Terms.

If further clrification required kindly let me know.

Is it possible to achieve the above said requirement, and if Yes, then Please guide me.

Thanks

Amitesh Anand