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Former Member
Nov 18, 2010 at 10:37 AM

STO - VAT condition

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Hello Guys,

We have got a crazy situation with VAT adjustments here.

a) When the vendor invoice for stock that goes to warehouse is posted, they can deduct the VAT.

b) However, for stock that is used in their own business, they cannot claim the VAT.

c) For the stock that is sold to the Customers, they can claim the VAT so they will add VAT back on the invoice.

d) For their own stock, they want to increase the value of the stock that goes to other plants by the VAT (for Intra-company STO's).

Now my question is: Is it possible to add a condition to the STO to add back 17% to the value of the goods? Something similar to the freight and duty conditions that we have on purchase orders?

I'll explain in accounting terms:

GR at warehouse: DR Stock 100, CR GR/IR 100

Invoice: DR GR/IR 100, CR Supplier 117, DR VAT 17

Sell to customer: CR stock 100, DR COS 100

Customer invoice: DR customer 117, CR VAT 17, CR Revenue 100

Transfer to other plant: CR stock at warehouse 100, DR stock at other plant 117, CR VAT clearing 17

Many thanks

Suneel