| # Financial Postings for Expensed taxes This functionality is specific for India. Financial postings for expensed taxes are made at the time of receipt of goods, inventory variance, registeration of purchase invoice and its approval. The financial transactions generated after the confirmation of the receipts in the Warehouse Receipts (whinh3512m000) session, are explained below with an example. Note The ledger accounts are defined for each excise tax code in the Posting Data for Tax Codes (tfgld0171s000) session. The ACP payable account is defined in the Accounts by Financial BP Group (tfacp0110m100) session. The amounts for an purchase order are listed in the following table:
Details of Order | Receipt Amount | Invoice Amount
--- | --- | ---
Order amount | INR1000 | INR1100
Actual CENVAT credit at receipt | INR 20 | INR 20
Actual expensed at receipt | INR 30 | INR 30
Estimated expensed at receipt | INR 50 | INR 55
Estimated CENVAT credit at receipt / Actual CENVAT credit at invoice | INR 40 | INR 44
At the time of receipt
Debit / Credit | Ledger account | Amount
--- | --- | ---
Debit | Inventory | INR1000
Credit | Interim Transit | INR 1000
Debit | Interim Transit | INR 1000
Credit | Goods received not invoiced | INR 1000
When the inventory is processed in inventory variance
Debit / Credit | Ledger account | Amount
--- | --- | ---
Debit | Inventory | INR 80
Credit | Inventory Variance | INR 80
To process claimable tax at receipt
Debit / Credit | Ledger account | Amount
--- | --- | ---
Debit | Excise tax | INR 20
Credit | Excise Clearing | INR 20
At the time of registering purchase invoice
Debit / Credit | Ledger account | Amount
--- | --- | ---
Debit | Register invoice | INR 1100
Debit | Excise Clearing | INR 20
Debit | Interim Variance | INR 30
Debit | Interim Variance | INR 55
Debit | Purchase tax | INR 44
Credit | ACP Payable | INR 1249
When purchase invoice is approved
Debit / Credit | Ledger account | Amount
--- | --- | ---
Debit | Goods received not invoiced | INR1100
Credit | Register invoice | INR1100
Debit | Goods received not invoiced | INR -100
Credit | Price variance | INR- 100
At the time of process of the inventory variance
Debit / Credit | Ledger account | Amount
--- | --- | ---
Debit | Inventory | INR 3
Credit | Inventory variance | INR 3
Debit | Inventory | INR 5
Credit | Inventory variance | INR 5